A new wave of growth has hit the US energy sector in recent months, driven by the directive expressed by the current US President, Donald Trump. Since taking office for his second term, Trump has directed the US energy companies to increase production of natural energy resources such as gas and oil, leading to several North American energy companies boosting investments in the oil and gas market and developing plans for new projects. One such project that has emerged is the Western Gateway Pipeline, being developed by Kinder Morgan and Phillips 66.
The US gas sector has seen a resurgence in recent months and years
Over the past years or so, the United States energy sector has experienced substantial growth, led by the directive from the President calling for increased levels of production across the gas and oil sectors. The US produces more gas than any other nation, and relies heavily on the exporting of said gas to boost the economy.
As the market is growing, several new gas pipelines are being planned to transport the natural resource to processing facilities, which can then be diverted to domestic markets as well as being exported to nearby nations. The Western Gateway Pipeline is being developed by Kinder Morgan and Phillips 66 to transport gas from the Texas Panhandle to Arizona and California.
The new Western Gateway Pipeline will connect Texas to the Western states
The companies have noted that the plan is for the pipeline to transport gas from Texas through Arizona towards Southern California, hence the name Western Gateway. A Phillips 66 news release noted that the project aims to “enhance energy reliability and address growing demand across the West”. Notably, the roadmap released by the companies states that the pipeline will pass through the Kinder Morgan El Paso Terminal, as well as in Tucson and Phoenix.
The Western Gateway project combines new and existing infrastructure
The pipeline will create new infrastructure that will work hand-in-hand with existing assets, marking the efficiency of the US gas transportation system. According to insiders, the pipeline will fill a gap in Arizona, as the state has no refineries of its own and often relies on gas exports from California, which has seen several plants closing down in recent months.
Phillips 66 will lead the construction of the pipeline, while Kinder Morgan will handle the primary operation responsibility. The pair of companies expects the project to be completed by 2029, pending approval from relevant regulators and receipt of the necessary permits. Notably, the pair has opened a binding season for the project that will run until December 19, 2025.
The growth of the natural gas and oil sector has been a market trend that has encompassed several exceedingly large energy companies. Shell has recently announced that it has brought online its sixth upstream project of this year, exemplifying the growth of the traditional oil and gas sector across the world.
New energy pipelines are being developed across the United States
The news of Kinder Morgan and Phillips 66 developing the Western Gateway Pipeline comes as other exceedingly large US energy companies report similar plans. Targa Resources has expressed its intention to construct a new 500-mile ‘Speedway’ pipeline that links the Permian basin to gas customers further afield in the US. The growth of the US energy sector has no doubt been influenced by the latest wave of sanctions on Russian energy companies, leading to the vast majority of customers turning to non-Russian energy suppliers such as the US. Thankfully, the Western Gateway Pipeline will create a new system to efficiently transport natural resources to new and existing customers in the US energy market.
