Phillips 66 and Kinder Morgan Inc said they had closed the initial open season for a proposed refined products pipeline from Texas to Arizona and would launch another open season next month.
The planned project, called Western Gateway Pipeline, includes a newbuild pipeline from Borger to Phoenix. This would be connected to Kinder Morgan’s existing SFPP pipeline from Colton, California, to Phoenix, Arizona, which would be reversed to flow to California, according to the partners.
The Phillips 66-operated Gold Pipeline, currently flowing from Borger to St Louis, would also be reversed to carry refined products from Mid-Continent refineries to Borger and supply Western Gateway, according to the Western Gateway partners.
Targeted for completion 2029, Western Gateways has a planned capacity of 200,000 barrels per day (bpd).
Launched October 20, the binding initial open season “received significant interest, including shipper commitments”, said a joint statement.
Kinder Morgan says on its website that after the open season, the SFPP East Line will be jointly owned with Phillips 66.
“Based on shipper interest, Phillips 66 and Kinder Morgan will launch a new open season for remaining capacity on the Western Gateway system in January 2026, which will include an offering of new destination(s) west of Colton, California, via a joint tariff with an existing SFPP line that will be reversed between Watson and Colton, California”, the statement said.
“Through this joint tariff arrangement, Western Gateway shippers will be able to access Los Angeles markets”.
Phillips 66 will build the entire new section and the line from Borger to El Paso. Kinder Morgan will operate the line from El Paso to its Phoenix, Arizona terminal and the remainder of the line, according to the project website.
Phillips 66 recently fully took over the Borger refinery in Texas, which produces up to 100,000 bpd of gasoline and 70,000 bpd of distillates, as part of its $1.4-billion purchase of an additional 50 percent stake in WRB Refining LP from Cenovus Energy Inc.
To contact the author, email jov.onsat@rigzone.com
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