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Phillips 66 and Kinder Morgan Secure Shipper Commitments for Proposed Western Gateway Pipeline

Phillips 66 and Kinder Morgan announced they have obtained sufficient long-term shipper commitments to proceed with the Western Gateway Pipeline project. The pipeline aims to connect Midwest and Gulf Coast fuel supplies to Arizona and California markets. It comes amid refinery closures that have reduced California's refining capacity by nearly 20%.

OilPrice.com
1 source·Apr 22, 8:00 PM(13 days ago)·1m read
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Phillips 66 and Kinder Morgan Secure Shipper Commitments for Proposed Western Gateway PipelineSteve Morgan / Wikimedia (CC BY-SA 3.0)
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Phillips 66 and Kinder Morgan announced on Monday that they have secured enough long-term shipper commitments to advance the proposed Western Gateway Pipeline. The pipeline will connect Midwest and Gulf Coast refinery supply to Phoenix, Arizona, and California markets, with connectivity to Las Vegas, Nevada, via Kinder Morgan’s CALNEV pipeline.

It will consist of a new pipeline from Borger, Texas, to Phoenix, Arizona, and include Kinder Morgan’s existing SFPP pipeline from Colton, California, to Phoenix, Arizona, which will be reversed to enable east-to-west product flows into California.

The Western Gateway Pipeline will be fed by Midwest and Gulf Coast supplies connected to Borger, Texas. The Gold Pipeline, operated by Phillips 66, currently flows from Borger to St. Louis and will be reversed to enable refined products from Midwest and Gulf Coast refineries to flow toward Borger.

The project is targeting an in-service date of mid-2029. com reported that the announcement follows refinery closures in California. Phillips 66's Los Angeles plant began winding down operations in September.

Valero Energy’s Benicia refinery plans to close this month. The closure of Phillips 66's Los Angeles plant and Valero Energy’s Benicia refinery together account for nearly 20% of California’s refining capacity. California’s market is almost entirely dependent on fuel brought in by tanker plus in-state supplies.

According to the Energy Information Administration, no pipelines carry fuel to California across the Rocky Mountains. Only a few pipelines carry fuel from the Gulf Coast to the West Coast. 02 per gallon, according to AAA.

The article was published on April 22, 2026, at 3:00 PM CDT.

Key Facts

Pipeline advancement
Phillips 66 and Kinder Morgan secured long-term shipper commitments to advance the Western Gateway Pipeline connecting Midwest and Gulf Coast supplies to Arizon
Refinery closures
Closures of Phillips 66's Los Angeles plant and Valero Energy’s Benicia refinery account for nearly 20% of California’s refining capacity.
Pipeline infrastructure
No pipelines carry fuel to California across the Rocky Mountains, and only a few from the Gulf Coast to the West Coast.
Gasoline prices
California gasoline prices average $5.82 per gallon, compared to the US average of $4.02 per gallon.
Project timeline
The Western Gateway Pipeline targets an in-service date of mid-2029.

Story Timeline

5 events
  1. 2026-04-22

    Article on the Western Gateway Pipeline published at 3:00 PM CDT.

    1 sourceOilPrice.com
  2. 2026-04-20

    Phillips 66 and Kinder Morgan announced securing long-term shipper commitments for the Western Gateway Pipeline.

    1 sourcePhillips 66 and Kinder Morgan
  3. 2026-04

    Valero Energy’s Benicia refinery plans to close this month.

    1 sourceunattributed
  4. 2025-09

    Phillips 66's Los Angeles plant began winding down operations.

    1 sourceunattributed
  5. mid-2029

    Targeted in-service date for the Western Gateway Pipeline.

    1 sourcePhillips 66 and Kinder Morgan

Potential Impact

  1. 01

    Reversal of existing pipelines may enhance connectivity to Las Vegas via CALNEV.

  2. 02

    Increased fuel supply to Arizona and California markets, reducing dependence on tankers.

  3. 03

    Closures may exacerbate short-term supply disruptions and price spikes in California.

  4. 04

    Potential reduction in California gasoline prices due to increased supply from the pipeline.

  5. 05

    Political and environmental opposition could delay permitting and project timeline.

Transparency Panel

Sources cross-referenced1
Framing risk0/100 (low)
Confidence score70%
Synthesized bySubstrate AI
Word count260 words
PublishedApr 22, 2026, 8:00 PM
Bias signals removed3 across 3 outlets
Signal Breakdown
Loaded 3

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