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PSX & KMI Launch Second Open Season for Western Gateway Pipeline
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Key Takeaways
A second open season was announced following strong demand in the initial Western Gateway Pipeline offering.
The project upgrades and redirects pipelines to transport fuel from refineries in the Midwest and Borger.
KMI's connections enable deliveries to Las Vegas via CALNEV and to Los Angeles through SFPP flow reversal.
Following a successful initial open season that concluded in December 2025, Phillips 66 (PSX - Free Report) and Kinder Morgan, Inc. (KMI - Free Report) announced a second open season due to strong demand from customers and fuel suppliers for the proposed Western Gateway Pipeline. The second open season commenced on Jan. 16, 2026, to allocate the remaining pipeline capacity and will end on March 31, 2026.
The Western Gateway Pipeline is a pipeline system that aims to transport refined fuels to western markets by upgrading and redirecting existing pipelines.
The Western Gateway Pipeline includes a new connecting pipeline that will transport fuel from Borger, TX, to Phoenix, AZ and connect to KMI’s existing SFPP pipeline. After flow reversal of the SFPP pipeline between Watson and Colton, it will enable fuel transport to California.
The PSX-operated Gold Pipeline plans to reverse its current direction of flow to enable fuel transportation from the Midwest to Borger, TX, and then onward to California via the Western Gateway Pipeline.
Accordingly, the Western Gateway Pipeline will enable transport of refined products from refineries near Borger, TX, and the Midwest to Phoenix and California with connectivity to Las Vegas, NV, via KMI’s existing CALNEV Pipeline and to Los Angeles, CA, via KMI’s existing SFPP pipeline (after flow reversal between Watson and Colton).
KMI and PSX have a presence in midstream operations and generate stable fee-based revenues insulated from crude price volatility. With robust demand for the Western Gateway Pipeline, both companies are expected to generate additional cash flow, strengthen their business models and enhance investor appeal.
Other midstream players in this space are Enterprise Products Partners L.P. (EPD - Free Report) and The Williams Companies, Inc. (WMB - Free Report) . Like PSX and KMI, both midstream players, WMB and EPD also generate stable fee-based revenues and are less vulnerable to oil and gas price volatility. EPD currently carries a Zacks Rank #3, while WMB has a Zacks Rank #4 (Sell).
WMB, headquartered in Tulsa, OK, is a leader in natural gas infrastructure and has a strong footprint in the deepwater Gulf, the Rockies, the Pacific Northwest and the Eastern Seaboard. WMB has filed an FERC application after signing customer agreements to expand the 10 billion cubic feet Pine Prairie storage and enhance energy reliability along the Gulf Coast.
With over 50,000 miles of pipeline network, more than 300 million barrels of liquids storage facilities and other infrastructure, EPD can serve products and services to multiple markets.
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PSX & KMI Launch Second Open Season for Western Gateway Pipeline
Key Takeaways
Following a successful initial open season that concluded in December 2025, Phillips 66 (PSX - Free Report) and Kinder Morgan, Inc. (KMI - Free Report) announced a second open season due to strong demand from customers and fuel suppliers for the proposed Western Gateway Pipeline. The second open season commenced on Jan. 16, 2026, to allocate the remaining pipeline capacity and will end on March 31, 2026.
The Western Gateway Pipeline is a pipeline system that aims to transport refined fuels to western markets by upgrading and redirecting existing pipelines.
The Western Gateway Pipeline includes a new connecting pipeline that will transport fuel from Borger, TX, to Phoenix, AZ and connect to KMI’s existing SFPP pipeline. After flow reversal of the SFPP pipeline between Watson and Colton, it will enable fuel transport to California.
The PSX-operated Gold Pipeline plans to reverse its current direction of flow to enable fuel transportation from the Midwest to Borger, TX, and then onward to California via the Western Gateway Pipeline.
Accordingly, the Western Gateway Pipeline will enable transport of refined products from refineries near Borger, TX, and the Midwest to Phoenix and California with connectivity to Las Vegas, NV, via KMI’s existing CALNEV Pipeline and to Los Angeles, CA, via KMI’s existing SFPP pipeline (after flow reversal between Watson and Colton).
KMI and PSX have a presence in midstream operations and generate stable fee-based revenues insulated from crude price volatility. With robust demand for the Western Gateway Pipeline, both companies are expected to generate additional cash flow, strengthen their business models and enhance investor appeal.
Both KMI and PSX currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other midstream players in this space are Enterprise Products Partners L.P. (EPD - Free Report) and The Williams Companies, Inc. (WMB - Free Report) . Like PSX and KMI, both midstream players, WMB and EPD also generate stable fee-based revenues and are less vulnerable to oil and gas price volatility. EPD currently carries a Zacks Rank #3, while WMB has a Zacks Rank #4 (Sell).
WMB, headquartered in Tulsa, OK, is a leader in natural gas infrastructure and has a strong footprint in the deepwater Gulf, the Rockies, the Pacific Northwest and the Eastern Seaboard. WMB has filed an FERC application after signing customer agreements to expand the 10 billion cubic feet Pine Prairie storage and enhance energy reliability along the Gulf Coast.
With over 50,000 miles of pipeline network, more than 300 million barrels of liquids storage facilities and other infrastructure, EPD can serve products and services to multiple markets.