Phillips 66 and Kinder Morgan are exploring the creation of a major refined-product pipeline system designed to deliver fuel from Mid-continent refineries to the U.S. West Coast and Southwest. The proposed route would include a new pipeline from Borger, Texas to Phoenix, Arizona, and a reversal of Kinder Morgan’s existing lines—including the Gold Pipeline—to reroute flows into the “Western Gateway” network.

This initiative comes amid announced refinery closures in California, notably the Phillips 66 Los Angeles site and Valero’s Benicia facility, which combined account for around 20% of California’s fuel supply. The new pipeline infrastructure aims to compensate for lost regional capacity and reduce supply risks. Industry analysts highlight that the shift signals a proactive logistics investment in response to declining local refining base and growing product transport demands.

With western U.S. gasoline and diesel markets under pressure, the pipeline plan could unlock enhanced throughput from Gulf Coast refineries and offer a strategic lifeline to refineries looking to redirect product flows inland.