Phillips 66 and Kinder Morgan Launch California Fuel Pipeline Project

Phillips 66 and Kinder Morgan Inc. have announced plans to construct a new pipeline system aimed at transporting gasoline and other fuels to California, Arizona, and Nevada. This initiative comes as California faces a decline in its in-state refining capacity, leading to an increased dependence on imported fuels, particularly gasoline. The proposed pipeline, known as the Western Gateway Pipeline, will enable fuel transport from as far as the Midwest, supplementing supplies from refiners located in Washington State and Asia.

First Pipeline System for California

Scheduled for completion around 2029, this project marks the first time a pipeline system will directly deliver motor fuels into California. The state has long been viewed as isolated from major refining centers situated in the Gulf Coast and Midwest. Recent refinery closures and conversions in California, including the upcoming shutdown of Phillips 66’s facility in the Los Angeles area, have raised concerns about fuel supply shortages and rising prices at the pump.

The announcement of the Western Gateway Pipeline includes an open season for bids from shippers seeking to reserve capacity on the pipeline. This bidding period will close on December 19, 2025, allowing interested parties the opportunity to secure space for fuel transportation.

Project Details and Future Implications

The Western Gateway Pipeline will involve a new line connecting Borger, Texas, where Phillips 66 operates a refinery, to Phoenix, Arizona. Additionally, Kinder Morgan plans to reverse the flow of its existing SFPP pipeline, which runs from California to Arizona, allowing for increased fuel shipments to California. Phillips 66 will also reverse the flow on the Gold Pipeline, facilitating the movement of Midwest fuel supplies westward. The Gold Pipeline transports fuel from Texas to the St. Louis region, where Phillips 66 maintains several fuel production facilities.

Past attempts by Kinder Morgan to initiate similar projects, such as the Freedom Pipeline proposed in 2013, faced significant challenges due to limited interest from potential shippers. The new project, however, reflects a growing urgency to address fuel supply constraints in California, a state grappling with both environmental pressures and economic implications stemming from fuel availability.

As the Western Gateway Pipeline progresses, the ramifications for consumers in California and neighboring states are expected to be significant. With fuel supplies diminishing and prices potentially rising, the successful implementation of this pipeline could offer a much-needed solution to the region’s fuel challenges. The collaboration between Phillips 66 and Kinder Morgan represents a strategic move to bolster energy infrastructure in a critical market, highlighting the evolving landscape of fuel distribution in the United States.