In the latest downstream shift, HF Sinclair Corporation revealed plans to expand its refined-product pipeline network across the Rocky Mountain region and the U.S. West Coast, in response to imminent refinery shutdowns in California and Nevada. With approximately 20% of California’s refining capacity slated for closure (via Phillips 66’s Los Angeles facility and Valero Energy Corporation’s Benicia plant) the company’s strategic pipeline “de-bottlenecking” could deliver up to 150,000 barrels per day of refined product to affected markets.
The first phase targets a capacity increase of about 35,000 barrels per day by 2028, moving product from the Rockies into Nevada via expansions to the Pioneer and UNEV pipelines. For refining and downstream technology stakeholders, this move underscores two interlinked trends: (1) refining margins are improving, creating investment momentum in midstream/refined-products infrastructure, and (2) refinery closures are prompting refiners to optimise logistics and feed-stock flows. This dynamic raises the importance of integrated assets: refining units must not only process crude, but refined product delivery pipelines are becoming key components of value chain resilience.