April 20 (Reuters) - Phillips 66 and Kinder
Morgan ( KMI ) have secured enough long-term shipper commitments
to move forward with a proposed pipeline project to supply fuel
to Arizona and California, they said on Monday.
The Western Gateway Pipeline project comes as companies race
to build a major new fuel pipeline to the U.S. West Coast ahead
of planned refinery closures in California, a relatively
isolated fuel market with limited pipeline links to major
refining hubs, leaving it vulnerable to supply disruptions and
price spikes.
Phillips 66 and Kinder Morgan ( KMI ) began seeking initial shipper
commitments in October for the proposed pipeline system that
would carry fuel from a Texas refining hub to Arizona and
California.
The companies have not disclosed the cost of the project.
The refined products pipeline system is designed to link
Midwest and Gulf Coast refinery supply to Phoenix, Arizona, and
California markets, with connectivity to Las Vegas through
Kinder Morgan's ( KMI ) CALNEV Pipeline.
The project includes a new pipeline from Borger, Texas, to
Phoenix, as well as the reversal of Kinder Morgan's ( KMI ) existing
pipeline between Colton, California, and Phoenix to allow
east-to-west flows into California. Phillips 66's Gold Pipeline,
which currently runs from Borger to St. Louis, will also be
reversed to supply the system.
The project is slated to begin service in mid-2029.