Oil rigs in the sunset. (Photo: Thaiview/Shutterstock)
Phillips 66 and Kinder Morgan Launch Open Season for Western Gateway Pipeline
A proposed 1,300-mile system addresses anticipated supply shortfalls on the West Coast following planned refinery closures in California
By Matthew Holloway, October 30, 2025 10:14 am
Phillips 66 and Kinder Morgan announced a binding open season this week for the Western Gateway Pipeline, a proposed 1,300-mile system to transport refined petroleum products from Texas refineries to markets in Arizona, Nevada, and California. A binding open season is a period where potential customers must commit to a contract for new or expanded pipeline capacity, often involving submitting a binding bid for service.
The project would use a 20-inch-diameter pipeline capable of moving up to 200,000 barrels per day of gasoline, diesel, and jet fuel. According to a joint statement from Kinder Morgan and Phillips 66, the route starts in Borger, Texas, in the Panhandle region, crosses New Mexico, and enters Arizona near the border, terminating in the Phoenix area. It would reverse flows on segments of Kinder Morgan’s existing SFPP pipeline and Phillips 66’s Gold Pipeline to enable westward delivery.
The open season, which runs through December 19, 2025, seeks commitments from shippers to determine project viability. If sufficient interest materializes, construction could begin in 2027, with operations targeted for 2029. The estimated cost is $2.5 billion, funded by a joint venture between the Houston-based companies.
The initiative addresses anticipated supply shortfalls on the West Coast following planned refinery closures in California, including Phillips 66’s Los Angeles facility, which is set to shutter in 2026. Arizona’s growing demand for refined products, fueled by population increases and data center expansions, would also benefit from diversified sourcing beyond current Pacific Northwest imports.
“This strategic infrastructure will enhance fuel supply security and reliability for the Western U.S.,” said Mark Lashier, chairman and CEO of Phillips 66, in a joint statement. “By connecting abundant refining capacity in Texas to high-demand markets, we’re supporting economic growth and energy resilience.”
Kinder Morgan CEO Kim Dang stated, “Our open season process ensures the project aligns with market needs, delivering safe, efficient transportation with minimal community impact.”
The Federal Energy Regulatory Commission (FERC) will oversee environmental reviews, focusing on emissions, habitat disruption in desert ecosystems, and water usage along the arid corridor. The venture plans a formal FERC application in early 2026, with public comment periods in affected states.
Early reactions on social media highlight the project’s potential regional impact. Texas Politics noted the pipeline’s role in “revers[ing] fuel flow into California,” projecting delivery to Arizona by 2029. RBN Energy described it as part of a “race to move more refined products west,” amid competition from rival proposals like ONEOK’s line from El Paso. Pipeline & Gas Journal reported the launch as a response to “supply losses from upcoming refinery closures.” Reuters reported the open season’s start amid broader West Coast supply strains.
Phillips 66 & Kinder Morgan began open season for a proposed fuel pipeline system from Texas to Arizona & California, as refinery closures stoke West Coast supply concerns. More @Reuters with @Su_mit_saha | Thx @GasBuddyGuy for insights#OOTT $PSX $KMI https://t.co/Gr8O7enllA
— Shariq Khan (@shariqrtrs) October 21, 2025
“This is potentially huge news for motorists in California, Las Vegas, Arizona, and great news for refiners in the Gulf,” GasBuddy analyst Patrick De Haan said on social media platform X.
This is potentially huge news for motorists in California, Las Vegas, Arizona and great news for refiners in the Gulf, could lead to additional refining capacity to feed these lines, especially in politically adventageous states. https://t.co/kbiaAgzUrO
— Patrick De Haan (@GasBuddyGuy) October 20, 2025
No organized opposition has surfaced, though environmental advocates may scrutinize carbon footprints and land crossings on Bureau of Land Management properties.
For project updates, visit the joint venture site at westerngatewaypipeline.com.
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This solves a problem and further exposes Californias weak ineffectual leadership. Instead of positioning the state for energy independence and good paying jobs for future generations in the oil industry we settle to be followers and not leaders. California still has massive amounts of oil reserves that should be developed again and used to supply our market. With government being the impediment in solving many societal problems Californians of all political parties need to demand change of our leaders or to use an old political adage “Throw the bums out”.
Having worked in WC gasoline distribution for decades, most of the pipelines needed to move gasoline from the GC to the L.A. Basin already exist and Kinder Morgan owns and operates most of them, at least from El Paso, Texas. They would need to be reversed which is more difficult than it sounds, but could be accomplished. No more need to move gasoline from L.A. to Arizona once the TX pipelines are reversed. This would be a huge first step in ramping up transportation fuels to SoCal.
This is good news! Leave it to private companies to bail out the citizens of California, because the dumb Democrats certainly don’t have the skills to do it.