Phillips 66, Kinder Morgan Advance Texas-Arizona Pipeline Project
The proposed pipeline, citing strong market interest, aims to improve supply flexibility for West Coast markets, a key outlet for Bakken crude.
Pipeline giants Phillips 66 and Kinder Morgan are advancing a major pipeline project from Texas to Arizona, according to a report from Rigzone. The development, reported Tuesday, is based on what the companies describe as "strong market interest."
The project is positioned to improve supply flexibility and reliability for West Coast markets, Rigzone reported. This is a significant development for Bakken producers, as California refineries are a traditional destination for crude shipped from North Dakota via rail and existing pipeline networks.
A new, large-scale pipeline heading toward the West Coast could potentially offer Bakken operators another avenue to reach those premium markets. Increased pipeline capacity to the region could enhance market competition and provide more stable pricing options for North Dakota's light sweet crude.
The advancement of this project by two major midstream players signals continued investment in long-haul infrastructure. For Bakken operators, any expansion of pipeline routes to coastal markets helps reduce reliance on more expensive transport methods like rail and can improve netbacks.
The specific timeline and capacity details for the Texas-to-Arizona line were not disclosed in the report. However, the cited "strong market interest" validates the commercial need for additional infrastructure to serve Western U.S. refiners.
Infrastructure developments in other basins often have ripple effects across the national crude transportation network. Bakken shippers will be monitoring the project's progress for potential future connections or impacts on overall crude flow patterns to the West.
Source
Rigzone
