Western Gateway Pipeline reaches final investment decision

Phillips 66, Kinder Morgan, and HF Sinclair have reached a final investment decision to proceed with the Western Gateway Pipeline system. The project, valued at approximately $5.0 billion, aims to create a new refined products supply path connecting the U.S. Midwest and Gulf Coast to markets in Arizona and California.

The system will feature approximately 900 miles of new-build pipeline from Borger, Texas, to Phoenix, Arizona, which Phillips 66 will construct and operate. The project also utilizes Kinder Morgan’s existing SFPP West Line, which will be reversed to move products west into California. The design capacity is set at 230,000 barrels per day, with provisions for future expansion.

Under a finalized joint venture agreement, Phillips 66 will hold a 49.9% stake, Kinder Morgan 35.1%, and HF Sinclair 15%. The companies target completion in 2029, pending necessary permits and regulatory approvals.