Phillips 66, Kinder Morgan, and HF Sinclair have finalized a joint venture agreement to develop the Western Gateway Pipeline, a $5 billion refined products pipeline system intended to enhance fuel supply to the U.S. West Coast. Under the agreement announced Tuesday, Phillips 66 will hold a 49.9 percent stake, Kinder Morgan will control 35.1 percent, and HF Sinclair will own 15 percent of the venture.

The Western Gateway Pipeline is planned to span approximately 1,300 miles, stretching from St. Louis, Missouri, and the Gulf Coast region to key locations in Arizona and California. With a design capacity of 230,000 barrels per day, the project aims to provide an additional route for transporting refined fuels to the West Coast, a market noted for its relative isolation from larger refining hubs and its vulnerability to supply disruptions and price volatility.

This initiative comes amid a backdrop of impending refinery shutdowns in California, which have raised concerns about potential fuel shortages and higher prices in the state and surrounding areas. The new pipeline is intended to strengthen the regional fuel infrastructure and mitigate risks associated with California's limited connections to other refining centers.

Project developers are targeting a 2029 completion date for the pipeline, which, if realized, would become a critical component of the fuel distribution network supplying the western United States. Industry observers note that the venture reflects a broader industry response to evolving energy demands and infrastructure challenges in the region.