Independent refiner Phillips 66 and midstream giant Kinder Morgan are weighing a new refined products pipeline system from Texas to western US markets.
The companies launched an open season today on the proposed Western Gateway pipeline which would move refined products from origin points in Texas to downstream markets in Arizona and California, with connectivity to Las Vegas, Nevada, via Kinder Morgan's Calnev system. The open season will close on 19 December.
The system would be a partnership between the two companies.
The plan includes a new pipeline from Borger, Texas, to Phoenix, Arizona, combined with the reversal of Kinder Morgan's existing SFPP pipeline from Colton, California, to Phoenix. Philips 66 owns and operates a 149,000 b/d refinery in Borger.
In addition, the Phillips 66-operated Gold Pipeline, which currently flows from Borger to St Louis, Missouri, would be reversed to allow refined products from midcontinent refineries to flow south to Borger and supply the Western Gateway system.
The plan comes as Phillips 66 is in the process of closing its 139,000 b/d Los Angeles refinery, and Valero is planning to shut its 145,000 b/d refinery in Benicia, California, by April 2026.
The planned closures have triggered major concerns about California's tight and often volatile oil products market and the impact on neighboring states.
Phillips 66 said last month that it has agreed to buy out its joint venture partner Cenovus Energy to gain full ownership of the Borger refinery as well as the 345,000 b/d Wood River refinery in Roxana, Illinois.
