The hidden ways that fuel travels thousands of miles to arrive in urban areas are hardly ever thought about by people, but the “hidden” pathway influences everything from the cost of traveling to the reliability of supplies arriving. A recent announcement from Kinder Morgan and Phillips 66 has reopened an old question: what if a project, which was designed to improve connections within a region, then moves forward on other fronts?
A slight adjustment that indicates a bigger trend
Pipeline announcements typically seem to have little to do with the day-to-day lives of most people; they’re buried deep within technical jargon and regional maps. However, the most recent update from Kinder Morgan and Phillips 66 illustrates a slightly different trend in the way that refined products may be transported throughout the West.
A process-oriented announcement, the potential exists for the development of a broader network of transportation routes that could alter traditional supply chains in the region.
The two companies announced the opening of a second open season for the Western Gateway Pipeline. Although the current open season does not assure the completion of the pipeline, it represents the first opportunity to see how the project could expand. This second open season also signifies a subtle shift — one that is reminiscent of a quiet re-positioning — in terms of the number of routes that are possible.
As the open season develops and grows, so too will the potential size and scope of the project’s footprint. More origin points are being added to allow for greater flexibility in supplying the system, while additional destination points are being added as well, indicating that what initially appeared to be a local or regional pipeline may eventually develop into a longer-range system.
Where the true impact of the decision occurs
The second open season is more than simply the reopening of unused capacity. In addition to the expanded capacity, the two companies will provide access to the Los Angeles market through the planned reversal of a Kinder Morgan SFPP line between Watson and Colton, California. When combined with a new-build line from Borger, Texas, to Phoenix, Arizona, the total system will appear to be far larger and more critical.
What is particularly noteworthy is the expansive nature of the project
When the Kinder Morgan pipeline is reversed, the system will be integrated with Phillips 66’s planned reversal of the Gold Pipeline to redirect refined products from Midcontinent refineries to Borger, creating a strategic route connecting Midwestern supply to high-demand Western markets.
When completed, the network will have a direct impact on several large population centers. The connectivity provided by the CALNEV Pipeline and the expansion of supply to cross California will transform the Western Gateway pipeline from a regional improvement to a broad, long-range network, capable of changing longstanding supply patterns across multiple states.
What the next actions truly demonstrate
It is here that the underlying message of the announcement becomes apparent: Kinder Morgan is not announcing that the pipeline will begin construction tomorrow. Rather, the company is determining how commitments for the future, along with origins and destinations, will ultimately determine the configuration of the final version of the Western Gateway system.
All that is currently occurring — including additional origins and reversed sections — establishes the parameters of what the Western Gateway system may become.
By mapping out the various supply paths, Kinder Morgan and Phillips 66 are establishing the map of a system designed to provide long-term resiliency in the Southwest and West Coast. The second open season (which runs from January 16 to March 31, 2026) establishes the time period during which shippers may help define the final outline of the project. As the Western Gateway project enters this formative stage, the course of action taken by the project suggests a future in which fuel movement across the West becomes more flexible.
