Full Breakdown
Western Gateway Pipeline Advances Amid California Fuel Shortages
4/25/2026, 7:47:04 AM
Project Overview
Phillips 66 and Kinder Morgan announced on April 20, 2026 that long-term shipper commitments allow the Western Gateway Pipeline to proceed. The 1,300-mile system will link Borger, Texas, to Phoenix, Arizona, and reverse Kinder Morgan’s SFPP line to deliver refined products into California. Service is targeted for mid-2029, pending definitive agreements and board approvals.
Context and Need
California’s refining capacity fell by nearly 20 % after Phillips 66 shut its Los Angeles plant and Valero closed its Benicia refinery, together representing about 18 % of state output. The loss has heightened the “fuel island” effect, pushing retail gasoline prices to $5.86-$5.95 per gallon in San Diego, Los Angeles and Orange counties.
Companies, Leadership, and Capacity
Phillips 66 (CEO Mark Lashier) will build and operate the Borger-to-El Paso segment; Kinder Morgan (CEO Kimberly Allen Dang) will run El Paso-to-Phoenix and the reversed SFPP line. The pipeline’s capacity is 200,000 bpd, drawing on Borger refinery output of up to 100,000 bpd gasoline and 70,000 bpd distillates.
Official Statements
Phillips 66 and Kinder Morgan said the shipper interest validates the project’s role in improving West Coast supply flexibility. Both emphasized using existing terminals and pipelines to limit new construction. Governor Gavin Newsom’s office called the project a “promising opportunity” to boost gasoline supply while the administration continues to seek ways to reduce oil dependence.
Criticism and Environmental Viewpoint
Climate advocates argue the pipeline entrenches fossil-fuel use contrary to California’s clean-energy targets. Ryan Schleeter of the Climate Center called the project “a band-a-id on a much bigger challenge,” urging a managed shift toward electrified transport.
Regulatory Status and Gaps
All parties note the project remains subject to definitive transportation agreements, joint-venture contracts, board sign-offs and federal, state and local permitting. While Kinder Morgan has said no new pipelines will be built in California, the reversal of existing lines still requires clearance, and no timeline for approvals has been provided.
Verbatim Quotes
- “Customer response during the open season underscores the importance of Western Gateway in addressing long-term refined products logistics needs in the region” — Mark Lashier, Chairman and CEO, Phillips 66
- “We’re pleased to be able to use our existing assets to leverage growth opportunities for the Arizona and California markets” — Kimberly Allen Dang, CEO, Kinder Morgan
- “The Western Gateway project is a promising opportunity to bring additional gasoline supply into the state and bolster resilience,” — Anthony Martinez, Deputy Communications Director, Governor Gavin Newsom’s Office
- “could have a large positive effect on motorists.” — Patrick DeHaan, Head of Petroleum Analysis, GasBuddy
- “The solution is really to chart the course for a managed transition away from relying on gas to a more electrified future.” — Ryan Schleeter, Climate Center
