Phillips 66, Kinder Morgan, HF Sinclair Approve $5B Western Gateway Project
The 1,300-mile system is backed by 10-year take-or-pay contracts and aims to move 230,000 barrels a day to the West Coast.
- Phillips, Kinder Morgan, and Sinclair finalized a joint venture agreement to proceed with the $5 billion Western Gateway Pipeline system, establishing a fuel supply route connecting the Gulf Coast and Missouri to Arizona and California.
- Designed to address fuel supply disruptions ahead of planned refinery closures in California, the 1,300-mile Western Gateway Pipeline features a design capacity of 230,000 barrels per day, linking major refining hubs to the isolated West Coast market.
- Phillips will own 49.9% of the venture, while Kinder Morgan holds 35.1% and Sinclair 15%, with contributions of nearly $2.5 billion, about $250 million, and about $750 million, respectively, toward the $5 billion enterprise value.
- Operations will reverse the Gold Pipeline from Borger, Texas, to Missouri, incorporating Kinder Morgan's existing SFPP East Line and West Line between Colton, California, and Phoenix, Arizona, valued at about $1.5 billion.
- Underpinned by 10-year take-or-pay contracts, the project targets completion in 2029. UBS analysts noted the route will benefit Phillips and Sinclair by moving product west, particularly during softer Midwest demand.
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$5 Billion Texas Fuel Pipeline Project Gets Final Investment Decision
Phillips 66, Kinder Morgan, Inc., and HF Sinclair Corporation announced Tuesday they have finalized a joint venture agreement and reached a final investment decision to proceed with the Western Gateway Pipeline system. The approximately $5 billion project will create a new refined products pipeline route from Texas and other origin points to Arizona and California. Under the joint venture, Phillips 66 will own 49.9%, Kinder Morgan 35.1%, and HF…
Phillips 66, Kinder Morgan, HF Sinclair approve Western Gateway pipeline project
Aug 11 (Reuters) - Phillips 66, Kinder Morgan and HF Sinclair said on Tuesday they have finalized a joint venture agreement and decided to proceed with the proposed $5 billion Western Gateway Pipeline system. Phillips 66 will own 49.9% of the joi...
Phillips 66, Kinder Morgan, HF Sinclair to move forward with $5B Western Gateway Pipeline (KMI:NYSE)
Phillips 66, Kinder Morgan and HF Sinclair finalized a joint venture agreement and made a final investment decision to build the proposed $5B Western Gateway Pipeline system.
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