The $5 billion Western Gateway Pipeline is advancing toward a planned 2029 completion after Phillips 66, Kinder Morgan and HF Sinclair reached a Final Investment Decision in August 2026. The project will create an approximately 1,300-mile refined-products pipeline system connecting fuel supplies from the Midcontinent and Gulf Coast with markets across Arizona and California.
The project includes about 900 miles of new pipeline between Borger, Texas, and Phoenix, Arizona, alongside existing Kinder Morgan infrastructure. Western Gateway will have a planned capacity of 230,000 barrels per day and will use Kinder Morgan’s SFPP East and West lines to extend the system toward Tucson and California. The developers also plan to reverse the West Line to support east-to-west product flows into California.
Phillips 66 will hold a 49.9% stake in the project, while Kinder Morgan will own 35.1% and HF Sinclair 15%. The partners have secured long-term shipper commitments, primarily through 10-year take-or-pay contracts, and now plan to advance the project through permitting and execution toward the 2029 in-service target.
Earlier developments: The proposed Western Gateway Pipeline moved a step closer to development after securing sufficient long-term shipper commitments during its latest open season, marking a key milestone toward eventual construction.
Announced on April 20, 2026, the development enables the project to progress toward final transportation agreements, joint venture arrangements, and board approvals—critical steps before construction can begin.
Backed by Phillips 66 and Kinder Morgan, the pipeline is designed to transport refined products from Midwest and Gulf Coast refineries to high-demand markets in Phoenix and California, with additional connectivity to Las Vegas.
New Construction Combined With System Reconfiguration
The Western Gateway Pipeline will integrate new construction with modifications to existing infrastructure across multiple states:
- A new-build pipeline segment from Borger to Phoenix
- Reversal of an existing pipeline between Colton and Phoenix to enable east-to-west flows into California
- Reversal of the Gold Pipeline to direct refined products toward Borger from Midwest and Gulf Coast supply sources
This hybrid model allows the project to leverage established assets while still requiring significant new construction, particularly along the Texas-to-Arizona corridor.
A Key Step Toward Construction
While not yet a notice to proceed, the successful open season represents a construction-enabling milestone, confirming sufficient market demand to justify advancing the project. Large-scale pipeline developments typically rely on these commitments before entering final engineering and procurement phases.
Why It Matters
The advancement of the Western Gateway Pipeline stands out as a major U.S. infrastructure development because it:
- Strengthens fuel supply reliability across western markets
- Signals continued investment in large-scale energy logistics infrastructure
- Sets the stage for a multi-state pipeline construction program
- Demonstrates how developers are combining new builds with existing systems to optimize capital efficiency
With shipper backing now secured, the project is positioned to move closer to construction, making it a notable development in the evolving U.S. energy infrastructure landscape.
As the Western Gateway Pipeline secures commitments to stabilize fuel supply in the West, the Northeast is seeing its own infrastructure surge with the start of NESE construction to meet growing natural gas demand. Also, Alongside pipeline expansion efforts, electricity infrastructure is also seeing upgrades, including the Bay Area 230 kV Underground Line, aimed at improving grid stability and supporting clean energy delivery.
Additionally, the Western Gateway Pipeline is one of several major U.S. fuel infrastructure projects advancing toward development. The proposed Brownsville refinery in Texas is pursuing a different part of the fuel supply chain, with America First Refining planning a facility capable of processing about 60 million barrels of domestic crude annually into diesel, jet fuel and specialized gasoline. The refinery remains in engineering and development as it works toward a Final Investment Decision.
Western Gateway Pipeline Fact Sheet
Project Overview
- Joint Venture Partners: Phillips 66 and Kinder Morgan, Inc.
- Project Name: Western Gateway Pipeline (Western Gateway)
- Target In-Service Date: Mid-2029
- Status: Advanced following successful second open season with long-term shipper commitments
- Primary Purpose: Transporting refined products to Arizona and California markets
- Enterprise value:Approximately $5 billion
- Final Investment Decision: August 11, 2026
- Ownership: Phillips 66 49.9%; Kinder Morgan 35.1%; HF Sinclair 15%
Infrastructure and Logistics
- New Construction: New-build pipeline segment from Borger, Texas, to Phoenix, Arizona
- Asset Integration: Utilization of Kinder Morgan’s existing SFPP, L.P. pipeline system
- Pipeline Reversals:
- SFPP Pipeline: Reversing flow from Colton, California, to Phoenix to enable east-to-west product delivery into California
- Gold Pipeline: Reversing Phillips 66-operated line (Borger to St. Louis) to move Midwest and Gulf Coast supplies toward Borger
- Regional Connectivity: Direct link to Las Vegas, Nevada, via Kinder Morgan’s CALNEV Pipeline
Market Impact
- Supply Sources: Midwest and Gulf Coast refinery hubs
- Target Markets: Phoenix (AZ), Las Vegas (NV), and various California regions
- Operational Benefits: Improved supply flexibility, enhanced reliability, and utilization of existing pipeline footprints
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