en.Wedoany.com Reported - On August 11, Phillips 66, Kinder Morgan, and HF Sinclair completed the joint venture agreement for the Western Gateway pipeline system and made a final investment decision on the project. The three companies will hold 49.9%, 35.1%, and 15% interests in the project, respectively, with an estimated enterprise value of approximately $5 billion. The project is scheduled for completion in 2029.

Western Gateway is a refined products pipeline system planned to span approximately 1,300 miles with a designed capacity of 230,000 barrels per day, delivering refined products from St. Louis in the U.S. Midwest and the Gulf Coast to Arizona and California. The system will also connect to Las Vegas, Nevada, via Kinder Morgan's existing CALNEV pipeline, with provisions for future capacity expansion.

The project includes the construction of approximately 900 miles of new pipeline from Borger, Texas, to Phoenix, Arizona, with diameters of 20 inches and 24 inches, to be built and operated by Phillips 66. Kinder Morgan will contribute the SFPP East Line from El Paso to Phoenix and Tucson, as well as the SFPP West Line from Colton to Phoenix, to the project, with the West Line's flow direction reversed to move refined products east-to-west into California.

Phillips 66 will also reverse the existing Gold pipeline connecting Borger and St. Louis, allowing refined products from Midwest and Gulf Coast refineries to flow to Borger and connect to the new pipeline. Upon completion of the Borger-to-Phoenix pipeline, Kinder Morgan will contribute the SFPP East and West Line assets to the joint venture at an estimated valuation of approximately $1.5 billion.

Under the investment arrangement, Phillips 66 will contribute approximately $2.5 billion in cash, while Kinder Morgan and HF Sinclair will contribute approximately $250 million and $750 million, respectively. The project's transportation capacity is primarily supported by 10-year take-or-pay contracts.

Phillips 66 and Kinder Morgan launched the project's binding open season in October 2025 and confirmed in April 2026 that they had secured long-term shipper commitments sufficient to move the project forward. The project has now transitioned from the commercial development phase to the final investment decision stage, with subsequent construction progress subject to various permits and regulatory approvals.