Kinder Morgan and Phillips 66 have proposed the Western Gateway Pipeline to bring gasoline, diesel, and jet fuel from St. Louis to Southern California, potentially ending California’s status as a “fuel island” and lowering gas prices. Melissa Ruiz, a spokesperson for Kinder Morgan, noted that refinery closures and rising fuel demand in Phoenix influenced the decision, along with the higher costs faced by West Coast refiners.
Energy companies are investing $50 billion in the U.S. pipeline infrastructure to meet rising demand for natural gas, driven by record LNG exports and growing electricity needs from data centers. Kinder Morgan, which transports 40% of the country's natural gas, has a $9.3 billion project backlog and plans to spend up to $3 billion in growth capital over the next few years. "It's one of the best opportunity sets in our lifetimes, in our careers," said Chief Financial Officer David Michels.