Western Gateway Pipeline Moves Toward LA Market Access


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- Phillips 66 and Kinder Morgan Inc. have closed an initial 
open season for transportation service on the proposed Western Gateway Pipeline 
after drawing strong shipper interest, a development that could provide an 
additional pathway for refined products into the U.S. West Coast market.

   The companies said commitments received during the first open season 
supported advancement of the project, prompting plans to launch a second open 
season in January 2026 for remaining capacity. The next phase is expected to 
include new delivery options in Southern California through a joint tariff 
arrangement designed to allow access to Los Angeles-area markets.

   Under the proposal, Western Gateway would combine a new pipeline linking 
Borger, Texas, to Phoenix, Arizona, with Kinder Morgan's existing SFPP system 
between Phoenix and Colton, California. Portions of the SFPP line would be 
reversed to enable east to west flows, allowing refined products to move into 
California rather than out of the state.

   Supplies feeding the system would originate from Midcontinent refinery hubs 
connected to Borger as well as existing supply points tied to the SFPP network 
in El Paso, Texas.

   Phillips 66 also plans to reverse its Gold Pipeline, which currently runs 
from Borger to St. Louis, to redirect refined products toward Borger for 
shipment on the Western Gateway system.

   If completed, the project would connect Midwest and Midcontinent refinery 
supply to demand centers in Arizona and California, with additional 
connectivity to Las Vegas, Nevada, via Kinder Morgan's CALNEV Pipeline.

   From a West Coast trading perspective, the proposal could add flexibility 
but may not fundamentally alter the region's tight supply structure.

   "Any new route into Southern California helps, especially during refinery 
outages, but it doesn't suddenly fix the lack of redundancy on the West Coast," 
one U.S. West Coast refined products trader said. "California specs, timing and 
logistics still limit how much supply can realistically move into the LA basin, 
so it's more of a pressure valve than a game changer."

   The companies have not announced a final investment decision or an in 
service date, noting that additional shipper commitments from the upcoming open 
season, along with regulatory and commercial considerations, will determine the 
project's scope and timing.




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