Phillips 66 and Kinder Morgan have announced plans to move forward with a pipeline project that would provide Southern California a much-needed connection to gasoline and other refined products via fuel terminals in other parts of the country.

In a joint statement, the two companies said there’s been more than sufficient interest from investors and shippers to proceed with the Western Gateway Pipeline — designed to run 1,300 miles from St. Louis to California.

If completed, the pipeline will be the first-ever pipeline system to deliver motor fuels into California.

Kinder Morgan and Phillips 66 officials have set an in-service target date of mid-2029. If completed, the pipeline would use a combination of existing infrastructure plus new construction.

“Strong market interest validates the role this project can play in improving supply flexibility and reliability for West Coast markets,” Phillips 66 CEO Mark Lashier said in a statement earlier this week.

Fuel analysts have often described California as a “fuel island” disconnected from refining hubs in the U.S.

The Golden State’s vulnerability to potential price gasoline price spikes and supply constraints have been highlighted by recent in-state refinery closures.

Phillips 66 shut down its twin refinery in the Los Angeles area late last year and by the end of this month, Valero will shutter its 145,000 barrels-per-day facility in the Northern California town of Benicia.

The Valero and Phillips 66 facilities combine to account for about 18% of California’s total refining capacity to process gasoline, diesel, aviation and other transportation fuels.

Patrick DeHaan, head of petroleum analysis at GasBuddy, said the Western Gateway Pipeline “could have a large positive effect on motorists.”

The line will have a capacity of about 200,000 barrels per day, DeHaan said on X, “and help keep California refined product closer to home while bringing more product” into Arizona from the east.

The project aims to construct a new line from the Texas Panhandle town of Borger to Phoenix. Meanwhile, the flow on an existing pipeline that currently runs from the San Bernardino County community of Colton to Arizona would be reversed, allowing more fuel to remain in California.

The entire pipeline system would link refinery supply from the Midwest to Phoenix and California, while also providing a connection into Las Vegas.

Gov. Gavin Newsom, through a spokesperson, reacted favorably to the Phillips 66 and Kinder Morgan decision — with a caveat.

“The Western Gateway project is a promising opportunity to bring additional gasoline supply into the state and bolster resilience,” Anthony Martinez, deputy communications director for the governor’s office, said in an email.

“At the same time,” Martinez added, “we’ll continue pursuing every solution that reduces the state’s dependence on oil — a volatile product that is tied to the global oil market, including foreign conflicts that raise prices on Americans in all states.”

Last fall, a representative for Kinder Morgan told the Union-Tribune there are no plans for the project to construct any new pipelines in California and “should put downward pressure” on prices at the pump.

“With no new builds in California and using pipelines currently in place, it’s an all-around win-win — good for the state and consumers,” Kinder Morgan’s director of corporate communications Melissa D. Ruiz said last October.

The Western Gateway Pipeline project is not yet a done deal.

The news release from Kinder Morgan and Phillips 66 said the project is “subject to the execution of definitive transportation service agreements, joint venture agreements and restrictive board approvals,” but did not offer more details.

There are also questions about potential regulatory hurdles, ranging from the federal government’s interstate oversight to environmental concerns.

The pipeline’s website said the project “will obtain and comply with all federal, state, and local environmental and construction permitting requirements, and comply with all stakeholder consultation requirements.”

California agencies will retain their oversight roles, officials in Newsom’s office said, but they don’t anticipate significant state-level permitting requirements for reversing flow on the existing line in California. Analysis within state government is still ongoing.

California’s gas prices are the highest in the country and have risen sharply since the onset of the war with Iran.

The average price for a gallon of regular in the San Diego area on Wednesday stood at $5.859, according to AAA. That’s $1.17 higher compared to the price when hostilities began on Feb. 28.

©2026 The San Diego Union-Tribune. Visit sandiegouniontribune.com. Distributed by Tribune Content Agency, LLC.