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California drivers could be seeing lower gas prices once a new mega-pipeline project reaches completion, flooding the state with the much needed black gold<\/a>.<\/p>\n In a recent joint announcement<\/a>, Phillips 66 and Kinder Morgan, Inc. said its Western Gateway Pipeline project was moving forward following the closure in the state of multiple refineries.<\/p>\n \u201cCustomer response during the open season underscores the importance of Western Gateway in addressing long\u2011term refined products logistics needs in the region,\u201d Phillips 66 Chairman and CEO Mark Lashier said.<\/p>\n Once fully operational, the massive pipeline will stretch from St. Louis, MO. to California, and be able to supply 200,000 barrels per day (bpd) into Phoenix, per the details about the project.<\/a><\/p>\n This will then replace the current 125,000 barrels AZ currently receives from California, allowing that fuel to stay and be used in the state.<\/p>\n The news could come as a huge relief as drivers in LA and across the state continue to contend with sky-high gas prices<\/a>. As of Saturday, the average price in the Golden State is $5.92 a gallon, according to AAA<\/a>.<\/p>\n Right now, Arizona and Nevada depend heavily on California for oil, according to the U.S. Energy Information Administration (EIA). <\/p>\n The Western Gateway pipeline would help address California\u2019s diminishing refining capabilities. The state is currently on track to lose as much as 20% of its capacity by mid-2026 according to the project\u2019s report.<\/p>\n The new pipeline will be co\u2011located alongside an existing pipeline from El Paso, Texas with products not only coming from refineries in the middle of the country but from Gulf Coast spots as well,\u00a0including refineries in Houston and Port Arthur.<\/p>\n \u201cWe\u2019re pleased to be able to use our existing assets to leverage growth opportunities for the Arizona and California markets,\u201d Kinder Morgan CEO Kim Dang said. \u201cBy utilizing existing pipeline assets across multiple states along the route, we\u2019re uniquely well-positioned to support a refined products transportation solution.\u201d<\/p>\n A map provided about the project, shows where the new Western Gateway pipeline would be constructed connecting Borger, Texas to Phoenix, combining it with Kinder Morgan\u2019s existing pipeline which sends oil from southern CA\u2019s Colton to AZ, but would be \u201creversed to enable east-to west product flows into California.\u201d<\/p>\n The project is expected to be completed by 2029 and would still be \u201csubject to the execution of definitive transportation service agreements, joint venture agreements, and respective board approvals,\u201d per the release.<\/p>\n Most of the US is connected by pipelines from places like Texas, but California isn\u2019t. The Golden state relies heavily on imported fuels by ship and in-state refineries.<\/p>\n California has\u00a0no access to interstate pipelines<\/a>, which would allow the state to receive much more oil.<\/p>\n Over the last few years, several major oil refineries<\/a> in California have closed or begun the process of closing. As these refineries stop operating, gas prices in California have already increased<\/a>.<\/p>\n The situation in California is made worse by Gov. Gavin Newsom\u2019s green agenda, which risks sending the price of a gallon above $8 per gallon<\/a>, lawmakers and experts have warned.<\/p>\n Drivers in the Golden State pay a \u201cCalifornia premium\u201d that includes higher-than-average state excise and sales taxes, as well as hefty fees for climate programs unique to the state.<\/p>\n California also requires a special and more costly fuel blend<\/a> designed to prevent pollution, which only the state\u2019s refineries and specific Asian countries can produce.<\/p>\n Last year, a massive Phillips 66 refinery<\/a>, stretching across LA\u2019s Carson and Wilmington, once a major source of in-state fuel, shut down<\/a> sending ripple effects straight to the pump.<\/p>\n When it announced the closure, Phillips 66 pointed to declining gasoline demand<\/a>, rising costs, and the challenges of operating under CA\u2019s strict environmental and fuel regulations.<\/p>\n Gov. Gavin Newsom, who has opposed pipeline openings<\/a> due to environmental concerns,\u00a0appeared to react favorably to the news, through a spokesperson.<\/p>\n \u201cThe Western Gateway project is a promising opportunity to bring additional gasoline supply into the state and bolster resilience,\u201d Anthony Martinez, deputy communications director for the governor\u2019s office, said in an email to the Orange County Register<\/a>.<\/p>\n \u201cAt the same time, we\u2019ll continue pursuing every solution that reduces the state\u2019s dependence on oil \u2014 a volatile product that is tied to the global oil market, including foreign conflicts that raise prices on Americans in all states.\u201d<\/p>\n The Post reached out to Phillips 66 and Kinder Morgan, the US Oil and Gas Association, and Newsom for further comment.<\/p>\n California Post News: Facebook<\/a>, Instagram<\/a>, TikTok<\/a>, X<\/a>, YouTube<\/a>, WhatsApp<\/a>, LinkedIn<\/a> A map shows where the new Western Gateway pipeline would be constructed connecting Borger, Texas to Phoenix. Kinder Morgan <\/p>\n
New mega-pipeline could soon fuel the state of California. Andy Johnstone for CA Post <\/p>\n
Most of the U.S. is connected by pipelines from places like Texas, but California isn\u2019t. Andy Johnstone for CA Post <\/p>\n
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