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The 230,000-barrel-per-day refined-products system includes approximately 900 miles of new 20-inch and 24-inch pipeline from Borger, Texas, to Phoenix, Arizona, with completion targeted for 2029.
Published by Allstream Insiders
Allstream Insiders Summary
Phillips 66, Kinder Morgan and HF Sinclair have finalized their Western Gateway Pipeline joint venture and taken a final investment decision on the refined-products system, which has an approximately $5 billion enterprise value. The project is designed to move 230,000 barrels per day through a combination of new and existing pipeline infrastructure connecting supplies from St. Louis and expanded Gulf Coast origin points with markets in Arizona and California.
The most substantial new-build component is an approximately 900-mile pipeline from Borger, Texas, to Phoenix, Arizona using 20-inch and 24-inch pipe. According to the August 11 FID release, Phillips 66 will construct and operate that segment.
Kinder Morgan will contribute its existing SFPP East Line and West Line assets to the joint venture after completion of the new Borger-to-Phoenix pipeline. The East Line serves El Paso, Phoenix and Tucson, while the West Line runs between Colton, California, and Phoenix. The West Line would be reversed to allow refined products to move east to west into California. Phillips 66’s Gold Pipeline would also be reversed to move products toward Borger after connecting with the Explorer Pipeline.
The partners are targeting completion in 2029, subject to receiving the required permits and regulatory approvals.
Western Gateway Pipeline Project Tracker
| Project element | Company-reported scope | Responsible party or owner | Status or schedule |
|---|---|---|---|
| Western Gateway system | Approximately 1,300 miles; 230,000 bpd design capacity | Phillips 66 49.9%; Kinder Morgan 35.1%; HF Sinclair 15% | FID reached; completion targeted for 2029, subject to approvals |
| Borger-to-Phoenix new build | Approximately 900 miles of 20-inch and 24-inch pipeline | Phillips 66 will construct and operate | New-build component of the 2029 project |
| SFPP East Line | Existing pipeline from El Paso to Phoenix and Tucson | Kinder Morgan will contribute and continue operating | Existing infrastructure to become part of the joint venture after new-build completion |
| SFPP West Line | Existing pipeline between Colton and Phoenix | Kinder Morgan will contribute and continue operating | Planned reversal for east-to-west movement into California |
| Gold Pipeline | Existing Phillips 66 pipeline connecting toward St. Louis | Phillips 66 operated | Planned connection with Explorer Pipeline and reversal toward Borger |
What Is the Western Gateway Pipeline?
Western Gateway is a proposed 1,300-mile refined-products pipeline system designed to create a new supply path from St. Louis and Gulf Coast origins to Arizona and California. Its 230,000-bpd design capacity would move products through a network combining a long new-build segment with reversals and contributions of existing pipelines.
The project is underpinned primarily by 10-year take-or-pay transportation contracts. Phillips 66 and Kinder Morgan previously completed multiple open seasons to secure long-term shipper commitments before the partners finalized the joint venture and reached FID.
Western Gateway is also being designed for future capacity expansion with limited additional capital and without installing another new pipeline. The companies did not assign a future expanded capacity in the FID announcement, so 230,000 bpd remains the disclosed design capacity for the current project.
What New Pipeline Will Be Constructed?
According to the August 11 FID release, Phillips 66 will construct and operate approximately 900 miles of new 20-inch and 24-inch pipeline from Borger to Phoenix. This new-build section represents the primary greenfield construction component of Western Gateway.
Borger will serve as a connection point for supplies moving from the Midwest and Gulf Coast. Phillips 66 plans to connect its Gold Pipeline with the Explorer Pipeline and reverse the Gold system’s current direction so refined products can move toward Borger and enter Western Gateway.
At Phoenix, the project would connect with Kinder Morgan’s SFPP system. The contributed SFPP East Line already links El Paso with Phoenix and Tucson, while the SFPP West Line connects Colton and Phoenix. Reversing the West Line would establish an east-to-west flow path into California.
Kinder Morgan’s CALNEV Pipeline provides the broader system with connectivity to Las Vegas, according to the companies’ earlier Western Gateway announcements.
How Will the Joint Venture Be Owned?
Phillips 66 will own 49.9% of Western Gateway, Kinder Morgan will own 35.1%, and HF Sinclair will own 15%. The companies announced the ownership structure after finalizing the joint venture agreement.
| Partner | Joint-venture ownership | Company-reported contribution |
|---|---|---|
| Phillips 66 | 49.9% | Approximately $2.5 billion in cash |
| Kinder Morgan | 35.1% | Existing SFPP East and West Line assets valued at approximately $1.5 billion, plus approximately $250 million in cash |
| HF Sinclair | 15% | Approximately $750 million in cash |
The approximately $5 billion figure is the project’s enterprise value, not a description of new cash construction spending alone. It includes the approximately $1.5 billion value assigned to Kinder Morgan’s contributed SFPP assets along with the partners’ expected cash contributions.
The partners said Kinder Morgan’s SFPP East and West Line assets would be contributed to the joint venture after completion of the new pipeline from Borger into Phoenix. Kinder Morgan would continue operating those existing pipelines, while Phillips 66 would operate the new-build segment.
What Does FID Mean for the Project Schedule?
Final investment decision moves Western Gateway beyond the commercial-development stage, but construction remains subject to permits and regulatory approvals. The partners are targeting project completion in 2029.
Phillips 66 and Kinder Morgan announced in April 2026 that successful open seasons had secured enough long-term shipper commitments to advance the project. At that stage, the companies still needed definitive transportation agreements, a final joint-venture agreement and board approvals.
The August 11 announcement confirms that the joint venture has been finalized and FID has been reached, with HF Sinclair joining as a 15% owner. It does not state that construction of the 900-mile pipeline has started. Potential next public milestones to monitor include permitting progress, construction authorization, major contract awards, right-of-way activity and a formal construction start.
Allstream Perspective
Western Gateway defines a large, multi-year pipeline project extending from the Texas Panhandle to Arizona, alongside reversal and interconnection work on existing systems. The 900-mile new-build scope and two disclosed pipe diameters make the project especially relevant to line-pipe manufacturers & line pipe distributors, pipeline contractors, inspection firms and automation providers.
As the project advances through permitting and execution, the disclosed configuration could support work involving:
- 20-inch and 24-inch line pipe, coatings and related materials
- Right-of-way preparation, trenching, welding and lowering-in
- Horizontal directional drilling and other specialized crossings where required
- Mainline valves, metering, pumping, electrical and control systems
- Pipeline interconnections and modifications associated with the Gold, Explorer and SFPP systems
- Reversal work, integrity verification, hydrostatic testing and commissioning
- Environmental surveys, permitting support and construction inspection
These categories are Allstream analysis based on the announced pipeline scope. They are not confirmed bid packages, contractor awards or procurement solicitations.
The project combines two distinct types of execution risk. The 900-mile new-build pipeline could require a long permitting and construction campaign, while the Gold Pipeline and SFPP West Line reversals could require carefully sequenced work on operating systems. The 2029 completion target remains qualified by regulatory approvals, making permit progress and construction authorization important indicators for the supply chain.
