Kinder Morgan Inc and Phillips 66 stated Monday they’ve secured sufficient long-term buyer commitments to proceed with a proposed pipeline for refined oil merchandise from Texas to Arizona.
“Buyer response through the open season underscores the significance of Western Gateway in addressing long-term refined merchandise logistics wants within the area”, Phillips 66 chair and chief government Mark Lashier stated in a joint assertion. “Robust market curiosity validates the function this mission can play in enhancing provide flexibility and reliability for West Coast markets”.
Kinder Morgan CEO Kim Dang stated, “We’re happy to have the ability to use our current belongings to leverage development alternatives for the Arizona and California markets”.
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Resolution on the Western Gateway mission remains to be topic to “the execution of definitive transportation service agreements, three way partnership agreements, and respective board approvals”, the businesses stated.
The companions held two open seasons to draw shippers.
Western Gateway would come with a newbuild pipeline from Borger, Texas to Phoenix, Arizona. This may be linked to Kinder Morgan’s current SFPP pipeline from Colton, California, to Phoenix, which might be reversed to movement to California, based on the companions.
The Phillips 66-operated Gold Pipeline, at present flowing from Borger to St Louis, would even be reversed to hold refined merchandise from Mid-Continent refineries to Borger and provide Western Gateway.
Focused for completion 2029, Western Gateway has a deliberate capability of 200,000 barrels per day (bpd).
Phillips 66 would construct the brand new section and function the road from Borger to El Paso. Kinder Morgan would function the road from El Paso to its Phoenix, Arizona terminal and the rest of the road, based on the mission web site.
“Utilizing Kinder Morgan’s current terminals and co-locating with their current pipelines minimizes Western Gateway’s footprint and brings produced gasoline from the Midcontinent area straight into Phoenix, reaching markets in Arizona and California, with additional optionality into Las Vegas, Nevada with connectivity to Kinder Morgan’s Calnev Pipeline”, the mission web site says.
Phillips 66 lately absolutely took over the Borger refinery in Texas, which has a declared manufacturing of as much as 100,000 bpd of gasoline and 70,000 bpd of distillates. The takeover was a part of its $1.4-billion buy of a further 50 p.c stake in WRB Refining LP from Cenovus Vitality Inc.
To contact the creator, e-mail jov.onsat@rigzone.com
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