Phillips 66 and Kinder Morgan extend open season for Western Gateway pipeline system

On January 31, Phillips 66 and Kinder Morgan announced the start of another open season for the Western Gateway pipeline system, and invited shippers to bid on remaining refined-products capacity and expanded transportation opportunities. The open season will include additional origin points and new destination markets, indicating a desire by the companies to increase commercial flexibility in the system. The Western Gateway is a critical piece in the transportation network that connects large refining areas to major demand markets. The extension appears to be a reflection of the determination by both Phillips 66 and Kinder Morgan to maximize shipper participation in the Western Gateway pipeline system. By creating additional time and a wider array of transportation routes, the companies are essentially altering the competitive environment for refined-product logistics in the western U.S.