Phillips 66, Kinder Morgan, HF Sinclair back $5 billion Western Gateway refined products pipeline project

Phillips 66, Kinder Morgan and HF Sinclair have reached final investment decision for the Western Gateway refined products pipeline joint venture.

The proposed 1,300-mile system targets 230,000 bpd of capacity and would create a new supply route from St. Louis and Gulf Coast origins to Arizona and California.

Ownership in the venture would be split among Phillips 66 at 49.9%, Kinder Morgan at 35.1% and HF Sinclair at 15%, with an enterprise value of about $5 billion.

Under the funding plan, Phillips 66 would contribute about $2.5 billion in cash, Kinder Morgan about $250 million and HF Sinclair about $750 million.

The companies are targeting an in-service date in 2029, subject to permits. Contracts are expected to be primarily 10-year take-or-pay agreements.