The Investor
11 Aug 2026, 16:28
Phillips 66, Kinder Morgan and HF Sinclair Move Forward With $5 Billion Western Gateway Pipeline
Phillips 66 (NYSE: PSX), Kinder Morgan (NYSE: KMI) and HF Sinclair (NYSE: DINO) have made a final investment decision to proceed with the Western Gateway Pipeline, a major new refined-products transportation system serving the western United States.
The companies finalized a joint venture in which Phillips 66 will own 49.9%, Kinder Morgan 35.1% and HF Sinclair 15%. The proposed 1,300-mile system will connect supply from St. Louis and Gulf Coast origin points with markets in Arizona and California, with designed capacity of approximately 230,000 barrels per day.
The project has an estimated enterprise value of $5 billion. Phillips 66 is expected to contribute about $2.5 billion in cash, HF Sinclair roughly $750 million and Kinder Morgan approximately $250 million, alongside Kinder Morgan pipeline assets valued at about $1.5 billion. The system is primarily backed by 10-year take-or-pay contracts, providing greater visibility into future cash flows.
Western Gateway is targeting completion in 2029, subject to regulatory approvals and permits. The project could strengthen the companies' midstream exposure while creating a new large-scale fuel transportation route into key Southwest and West Coast markets.
Phillips 66 (NYSE: PSX), Kinder Morgan (NYSE: KMI) and HF Sinclair (NYSE: DINO) have made a final investment decision to proceed with the Western Gateway Pipeline, a major new refined-products transportation system serving the western United States.
The companies finalized a joint venture in which Phillips 66 will own 49.9%, Kinder Morgan 35.1% and HF Sinclair 15%. The proposed 1,300-mile system will connect supply from St. Louis and Gulf Coast origin points with markets in Arizona and California, with designed capacity of approximately 230,000 barrels per day.
The project has an estimated enterprise value of $5 billion. Phillips 66 is expected to contribute about $2.5 billion in cash, HF Sinclair roughly $750 million and Kinder Morgan approximately $250 million, alongside Kinder Morgan pipeline assets valued at about $1.5 billion. The system is primarily backed by 10-year take-or-pay contracts, providing greater visibility into future cash flows.
Western Gateway is targeting completion in 2029, subject to regulatory approvals and permits. The project could strengthen the companies' midstream exposure while creating a new large-scale fuel transportation route into key Southwest and West Coast markets.
