Fuel pipeline logistics in the Southwest U.S. typically go unnoticed unless a shortage of supplies or a constraining supply route exists. In recent months, one refined products corridor has been quietly tested by shippers and viewed by two major operators. The real issue here is whether early market indicators provide adequate justification to take the next step.
Corridor proposal for western markets
The renewed attention reflects a period where shipper interest and operator review have moved beyond informal assessment toward more structured evaluation. Against that backdrop, Western Gateway has emerged as a candidate corridor under consideration rather than an assumed or inevitable solution.
Phillips 66 and Kinder Morgan outline the proposed refined products pipeline system, referred to as Western Gateway. This proposed pipeline will link Midwestern and Gulf Coast refinery supply to the Phoenix, AZ, and CA markets, and allow for connections to Las Vegas, NV, via Kinder Morgan’s Calnev Pipeline.
The company characterizes this as a “logistics solution,” utilizing established receipt points and pipeline assets wherever possible. Western Gateway utilizes receipt points and pipeline assets as established, while creating new targeted construction to create a continuous flow route into the Southwest and West Coast.
At this time, even though the project is described as “developmental” vs. “final,” progress is contingent upon future commercial agreements and regulatory approvals. Thus, it appears that the corridor is being reviewed intentionally, rather than being assumed as necessary.
How the system will work
Western Gateway will consist of a new‑build pipeline running from Borger, TX, to Phoenix, AZ. As part of the same project, Kinder Morgan’s existing SFPP, L.P. pipeline from Colton, CA, to Phoenix will be reversed to allow east‑to‑west product flows into California.
Phillips 66’s Gold Pipeline (currently running from Borger to St. Louis) will also be reversed so that refined products flowing from Midwestern and Gulf Coast refineries can move toward Borger and feed the Western Gateway system.
Phillips 66 and Kinder Morgan have both indicated that they anticipate placing the project online by mid‑2029. Additionally, they note that the final execution of the project depends upon negotiated transportation service agreements, joint‑venture terms, and board approvals.
Changes after the open season outcome
The primary change is that Phillips 66 and Kinder Morgan have confirmed their intention to pursue Western Gateway following a successful second open season, which secured long‑term shipper commitments sufficient to move the project forward, subject to final agreements and approvals.
Phillips 66 Chairman and CEO Mark Lashier noted that customer response during the open season provided evidence of the importance of Western Gateway in addressing the long‑term refined products logistics needs in the region. Mr. Lashier further noted that market interest validated the role the project could play in improving supply flexibility and reliability for West Coast markets.
Kinder Morgan President and CEO Kimberly Dang emphasized the advantages of leveraging existing assets, noting that Kinder Morgan is well-positioned to support a refined products transportation solution through infrastructure already in place across multiple states.
Phillips 66 and Kinder Morgan indicate that proceeding with the project is conditional. Next steps are dependent on executing definitive transportation service agreements, finalization of joint‑venture agreements, and receipt of respective board approvals. The announcement frames the open‑season commitments as sufficient to proceed with the project; however, they do not provide final authorization to build.
From market testing to agreement-building
Thus, Western Gateway will transition from market testing to agreement‑building. While shippers have been secured, the next phase will be to convert interest into executed agreements and maintain alignment among partners. Should these actions proceed as planned, the project may become a significant component of long‑term refined products logistics needs in the region.
