Phillips 66, Kinder Plan First-Ever California-Bound Fuel Pipe

Phillips 66 and Kinder Morgan Inc. plan to build a new pipeline system and reverse the flow on some existing conduits to haul gasoline and other fuels to California, Arizona and Nevada.

As California’s in-state refining capacity dwindles, the regional market is becoming increasingly reliant on imported fuels, especially gasoline. The pipeline project hatched by Phillips 66 and Kinder will carry fuels from as far away as the Midwest to augment supplies sent by refiners in Washington State and Asia.

The project, slated for completion around 2029, would be the first pipeline system to deliver motor fuels into California, a ...