Wedoany.com Report-Oct. 26, Phillips 66 and Kinder Morgan Inc. announced plans to construct a new fuel pipeline network and reverse the flow of certain existing lines to transport gasoline and other refined products to California, Arizona, and Nevada. The initiative aims to address declining in-state refining capacity in California, which has made the region increasingly dependent on imported fuels, particularly gasoline. The new system will carry supplies from as far as the Midwest to supplement volumes already shipped by refiners in Washington State and Asia.

Phillips 66 and Kinder Morgan Inc. plan to build a new pipeline system.

Scheduled for completion around 2029, the Western Gateway Pipeline project would mark the first time a pipeline system delivers motor fuels directly into California, a state traditionally isolated from major refining centers in the Gulf Coast and Midwest. The project is designed to strengthen regional fuel security and enhance supply chain stability amid recent refinery closures and conversions across California, including the upcoming shutdown of Phillips 66’s Los Angeles-area refinery. Analysts expect the transition to tighten local fuel supplies and potentially affect prices for motorists in California and neighboring states.

According to Phillips 66, the companies launched an open season on Monday for shippers to bid on transport capacity for the proposed Western Gateway Pipeline. The bidding period will remain open until December 19. The project envisions constructing a new pipeline connecting Borger, Texas—home to a Phillips 66 refinery—to Phoenix, Arizona. In addition, Kinder Morgan’s existing SFPP pipeline, which currently moves fuel from California to Arizona, will have its flow reversed to direct more fuel into California.

Phillips 66 also intends to reverse the flow on its Gold Pipeline, which currently delivers fuel from Texas to the St. Louis area. Once reversed, the line would allow fuel from the Midwest to flow westward. Along the route, Phillips 66 operates refineries in Ponca City, Oklahoma, and Wood River, Illinois, both of which could serve as key supply points for the westbound flow.

Kinder Morgan has explored similar infrastructure proposals in the past. In 2013, the company proposed the Freedom Pipeline, a project intended to transport crude oil from West Texas to California. However, that plan was abandoned after attracting limited interest from potential shippers.

The new Western Gateway Pipeline represents a major step in connecting the U.S. heartland’s fuel production to the western market, potentially reducing logistical bottlenecks and improving long-term supply resilience for California and neighboring regions.