Phillips 66 and Kinder Morgan Inc. plan to construct a brand new pipeline system and reverse the circulation on some current conduits to haul gasoline and different fuels to California, Arizona and Nevada.
As California’s in-state refining capability dwindles, the regional market is turning into more and more reliant on imported fuels, particularly gasoline. The pipeline undertaking hatched by Phillips 66 and Kinder will carry fuels from as far-off because the Midwest to enhance provides despatched by refiners in Washington State and Asia.
The undertaking, slated for completion round 2029, could be the primary pipeline system to ship motor fuels into California, a state lengthy thought-about an island disconnected from the most important refining hubs of the Gulf Coast and Midwest.
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The funding comes amid a wave of California refinery closures or conversions — together with the approaching shutdown of Phillips 66’s Los Angeles-area plant — that threaten to squeeze motorists with shrinking gas provides and better pump costs. Customers in some neighboring states are also anticipated to really feel the impacts.
Phillips 66 and Kinder introduced Monday what is named an open season on their proposed Western Gateway Pipeline, throughout which bids are solicited from shippers that may reserve area on the conduit for shifting fuels. The bidding window will shut on Dec. 19, Phillips 66 wrote within the assertion.
The Western Gateway undertaking would contain constructing a brand new line between Borger, Texas, the place Phillips 66 operates a refinery, and Phoenix. In the meantime, the circulation on Kinder’s current California-to-Arizona pipe often known as SFPP will likely be reversed so extra gas can circulation to the Golden State.
Phillips 66 additionally plans to reverse the circulation on the Gold Pipeline that carries provides from Texas to the St. Louis area so Midwest gas can transfer west. The refiner operates fuel-making vegetation alongside the Gold Pipeline route together with in Ponca Metropolis, Oklahoma, and the St. Louis suburb of Wooden River, Illinois.
Kinder has eyed related initiatives up to now, proposing in 2013 the Freedom Pipeline that may have carried oil from West Texas to California. However that proposal was finally shelved after receiving anemic curiosity from potential shippers.
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