Phillips 66, Kinder Morgan and HF Sinclair Greenlight $5 Billion Western Gateway Pipeline to Supply California and Arizona

Phillips 66, Kinder Morgan and HF Sinclair have made a final investment decision to build the Western Gateway Pipeline, a roughly 900-mile, $5 billion refined products pipeline system that will carry gasoline, diesel and jet fuel from the Texas Panhandle to Phoenix and Los Angeles, with connectivity to Las Vegas via Kinder Morgan's existing CALNEV Pipeline. The project, announced August 11, follows a successful second open season closed in April 2026 that secured sufficient long-term, take-or-pay customer commitments to advance the venture. The pipeline is targeted for completion by mid-2029, and is designed to connect Midwest and Gulf Coast refinery supplies to fast-growing Southwest markets that currently rely heavily on more expensive West Coast production.

Phillips 66 stock hit an all-time high of $216.32 on the day of the announcement, and the broader refiner sector, including Valero and Marathon Petroleum, rallied to new highs as investors welcomed the prospect of expanded, lower-cost supply infrastructure reaching California and Arizona.