California is set to receive a major new fuel supply route as Phillips 66 and partners move forward with the $5 billion Western Gateway Pipeline, the Wall Street Journal reports. The planned 900-mile system will transport about 230,000 barrels of gasoline, diesel, and jet fuel per day from the Texas Panhandle through Arizona and into California.
The project comes after California lost two major refineries, reducing the state’s refining capacity and contributing to higher fuel prices. The 1,300-mile pipeline system, including about 900 miles of new construction from Borger, Texas, to Phoenix, is designed to strengthen fuel supply reliability and reduce dependence on other sources. The companies are targeting completion in 2029, subject to permits and regulatory approvals.
Phillips 66, Kinder Morgan, and HF Sinclair finalized their joint venture and made the final investment decision on August 11. Phillips 66 will hold 49.9%, Kinder Morgan 35.1%, and HF Sinclair 15% of the project.
