Phillips 66 and Kinder Morgan Advance Pipeline to Supply California, Arizona Markets

Energy companies Phillips 66 and Kinder Morgan are moving forward with a proposed fuel pipeline project to supply Arizona and California after securing sufficient long-term shipper commitments, Reuters reported. 

In a joint statement on Monday, Phillips 66 Chairman and CEO Mark Lashier said the response demonstrated the project’s role in addressing long-term refined products logistics needs, while Kinder Morgan CEO Kim Dang said the companies would use existing pipeline assets across multiple states to support Arizona and California markets.

“Strong market interest validates the role this project can play in improving supply flexibility and reliability for West Coast markets,” Lashier said.

The announcement follows months of development activity on the Western Gateway Pipeline, including a multi-phase “open season” process launched in 2025, as previously reported by California Globe and expanded in early 2026 to attract fuel shippers and secure commercial support for the project.

During the open season, prospective customers were invited to commit to transporting fuel on the system, a standard step in pipeline development used to determine whether sufficient demand exists to proceed. The companies later extended and expanded the offering to include additional destinations and capacity before closing the process in April 2026.

According to the companies, the open season generated enough long-term commitments to advance the project, which remains subject to final agreements and approvals.

The Western Gateway Pipeline is designed to transport refined petroleum products from a Texas refining hub to markets in Arizona and California.

The project includes the construction of a new pipeline segment from Borger, Texas, to Phoenix, Arizona, as well as the reversal of existing pipeline infrastructure to enable fuel flows into California, according to project mapping.

Specifically, Kinder Morgan plans to reverse its existing pipeline between Colton, California, and Phoenix to allow east-to-west fuel flow into California, while Phillips 66 intends to reverse its Gold Pipeline, which currently runs from Borger, Texas, to St. Louis, Missouri, to supply the system.

The system is also expected to connect to Las Vegas through Kinder Morgan’s CALNEV Pipeline network.

“By utilizing existing pipeline assets across multiple states along the route, we’re uniquely well-positioned to support a refined products transportation solution,” Dang said.

After securing long-term shipper commitments through a second open season, @Phillips66Co and @Kinder_Morgan have announced plans to advance the Western Gateway Pipeline, pending final agreements and approvals. https://t.co/XXGXoFun7i #Midstream #Construction #Pipelines pic.twitter.com/AfE1cK2aFa

— Inspectioneering (@Inspectioneer) April 22, 2026

The project comes as energy companies seek to expand fuel-supply infrastructure to the U.S. West Coast, where California’s refining capacity has declined in recent years, and pipeline connections to other refining regions remain limited, according to Reuters.

The project is intended to increase fuel supply flexibility to West Coast markets amid planned refinery closures in California, according to company and industry reporting.

According to Reuters, the Western Gateway Pipeline is expected to begin service in mid-2029.