Phillips 66, Kinder Morgan, HF Sinclair form Western Gateway refined products pipeline JV

Phillips 66, Kinder Morgan and HF Sinclair have formed a joint venture for the proposed Western Gateway refined products pipeline system.

Kinder Morgan said it entered the joint venture with Phillips 66 and HF Sinclair for the project, with ownership set at 35.1% for Kinder Morgan, 49.9% for Phillips 66 and 15% for HF Sinclair. The partners said they have taken a final investment decision.

The project targets a 1,300-mile system moving refined products from St. Louis and Gulf Coast supply into Arizona and California, with designed capacity of 230,000 barrels per day.

Kinder Morgan said the enterprise value is about $5 billion. As part of the deal, Kinder Morgan will contribute its SFPP East and West Line assets, valued at about $1.5 billion, and add about $250 million in cash.

The project is targeted for completion in 2029, subject to permits and regulatory approvals.