Question · Q3 2025
Theresa Chinn inquired about the rationale and strategic importance of the Western Gateway pipeline project, its competitive positioning against other projects, and its potential impact on product flows and margin capture for Phillips 66's Central Corridor assets. She also asked about the anticipated CapEx for the project and the cost split with Kinder Morgan.
Answer
Chairman and CEO Mark Lashier emphasized the project's role in providing energy to the West Coast by leveraging Mid-Continent strengths, addressing reduced refining capacity in California and growing demand in Arizona/Nevada. Midstream and Chemicals executive Don Baldridge described the Gold Line's role as a supply header for Mid-Continent refineries, feeding the Western Gateway to Phoenix and Colton, California. Marketing and Commercial executive Brian Mandell likened the PAD 5 market to PAD 1 post-pipeline, enabling Phillips 66 to move products from Mid-Continent refineries for better netbacks. Don Baldridge stated the partnership is 50/50 with Kinder Morgan, and while CapEx isn't disclosed, it's expected to be a consistent midstream-type return investment, with spending anticipated in 2027-2029.