Phillips 66 reports growing multi-level support for the Western Gateway Pipeline, an ambitious project designed to bridge the gap between Midwest refining hubs and Californian markets.
The system utilizes a mix of new construction and strategic reversals:
- New Build: A line connecting Borger, Texas, to Phoenix, Arizona.
- SFPP West Line Reversal: Flipping the current Colton-to-Phoenix flow to facilitate east-to-west transport into California.
- Gold Pipeline Reversal: Reorienting the Borger-to-St. Louis line to funnel Midcontinent products into the Western Gateway system.
The binding open season for Western Gateway Pipeline ends on December 19 and has “gone quite well,” Phillips 66 chief executive Mark Lashier told Bloomberg News.
“We will be a substantial shipper on it ourselves,” the executive said.
The scale of the Western Gateway pipeline is still being determined as Phillips 66 and Kinder Morgan evaluate market interest, but leadership remains optimistic. Speaking to Bloomberg, Mark Lashier highlighted that the project is on solid ground regarding both regulatory approvals and local relations, specifically noting "buy-in" from communities near Mescalero Apache land.
Though the project has a 2029 target date, it boasts significant political momentum from the Trump administration and regional state governments. By emulating the Colonial Pipeline's model of moving Gulf Coast fuel to high-demand regions, Western Gateway aims to stabilize a volatile Western energy market and lower California’s nation-leading gas prices.
