Key facts
- Phillips 66, Kinder Morgan, and HF Sinclair have finalized a joint venture agreement for the Western Gateway Pipeline.
- The companies have made a final investment decision to proceed with the $5 billion project.
- Phillips 66 will hold a 49.9% stake, Kinder Morgan 35.1%, and HF Sinclair 15% in the joint venture.
- The pipeline aims to connect Midwest and Gulf Coast refinery supplies to markets in Phoenix, Arizona, and California.
- The project is anticipated to be completed by mid-2029.
Phillips 66, Kinder Morgan, and HF Sinclair have announced a final investment decision and finalized a joint venture agreement to proceed with the proposed $5 billion Western Gateway Pipeline system. Under the agreement, Phillips 66 will own 49.9% of the venture, Kinder Morgan 35.1%, and HF Sinclair 15%.
The pipeline project is designed to connect Midwest and Gulf Coast refinery supplies to markets in Phoenix, Arizona, and California, with connectivity to Las Vegas, Nevada, via Kinder Morgan's existing CALNEV pipeline. The system will involve a new-build pipeline from Borger, Texas, to Phoenix, Arizona, and the reversal of Kinder Morgan's existing SFPP, L.P. pipeline into California. The Gold Pipeline, operated by Phillips 66, will also be reversed to feed refined products from Midwest and Gulf Coast refineries toward Borger.
This initiative comes as companies are working to build new fuel pipelines to the U.S. West Coast ahead of planned refinery closures in California. This region is a relatively isolated fuel market with limited pipeline links, making it vulnerable to supply disruptions and price spikes. The project is targeting an in-service date of mid-2029.