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BAKKEN WIRE
Midcontinent Pipeline Project Advances as Global Refinery Fire Impacts Supply - Bakken Wire
Pipeline & Infrastructure

Midcontinent Pipeline Project Advances as Global Refinery Fire Impacts Supply

Phillips 66 and Kinder Morgan secure shippers for Texas-to-Arizona line, while an Australian refinery fire highlights global fuel logistics.

Bakken Wire Staff·☀️Morning Wire·

Phillips 66 and Kinder Morgan Inc. have secured enough long-term customer commitments to proceed with the proposed Western Gateway refined products pipeline from Texas to Arizona, according to a joint statement reported Monday. For Bakken operators, the project represents a potential new outlet for Midcontinent refinery output, which processes crude from regions like the Bakken.

The Western Gateway project would move refined products like gasoline and diesel. It includes a newbuild pipeline from Borger, Texas, to Phoenix, Arizona, with a planned capacity of 200,000 barrels per day and a target completion date of 2029, according to Rigzone. To supply the line, the Phillips 66-operated Gold Pipeline, which currently flows from Borger to St. Louis, would be reversed to carry refined products from Mid-Continent refineries to Borger.

"Customer response during the open season underscores the importance of Western Gateway in addressing long-term refined products logistics needs in the region," Phillips 66 chair and CEO Mark Lashier said in the statement. Kinder Morgan CEO Kim Dang added the project leverages existing assets for growth in Arizona and California markets. The final investment decision is still subject to final agreements and board approvals.

Separately, a fire at the Geelong Refinery in Australia underscores the fragility of global fuel supply chains. The fire hit the refinery on April 15, but the operator, Viva Energy Group Ltd., expects to restore production of transportation fuels to over 90 percent of capacity within a few weeks, according to a statement Wednesday. The refinery has a processing capacity of 120,000 barrels per day and supplies over 50 percent of Victoria's fuel.

Viva Energy CEO Scott Wyatt said the company does not expect disruptions to fuel availability or price increases for its customers due to the incident. However, the Australian government has moved to secure additional diesel stocks, procuring over 570,000 barrels of diesel through its Strategic Reserve powers in partnership with suppliers like Viva and BP Australia, according to the prime minister's office.

The two developments highlight the interconnected nature of refined product markets. The advancement of the Western Gateway pipeline aims to improve supply flexibility and reliability for West Coast markets, which could indirectly benefit Bakken crude producers by enhancing the value and flow of refined products from the Midcontinent region. Meanwhile, the rapid response to the Australian refinery fire demonstrates how localized supply shocks can trigger government intervention to secure inventories, a dynamic that can influence global diesel pricing and trade flows relevant to North Dakota's energy sector.

Source

According to Rigzone reports published April 21 and April 22, 2026.

pipelineinfrastructurerefined productsphillips 66kinder morganrefinerysupply chainbakken

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