California drivers could be seeing lower gas prices once a new mega-pipeline project reaches completion, flooding the state with themuch needed black gold.

In a recent jointannouncement, Phillips 66 and Kinder Morgan, Inc. said its Western Gateway Pipeline project was moving forward following the closure in the state of multiple refineries.

“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 Chairman and CEO Mark Lashier said.

Once fully operational, the massive pipeline will stretch from St. Louis, MO. to California, and be able to supply 200,000 barrels per day (bpd) into Phoenix, per thedetails about the project.

This will then replace the current 125,000 barrels AZ currently receives from California, allowing that fuel to stay and be used in the state.

The news could come as a huge relief as drivers in LA and across the state continue to contend withsky-high gas prices. As of Saturday, the average price in the Golden State is $5.92 a gallon, according toAAA.

Right now, Arizona and Nevada depend heavily on California for oil, according to the U.S. Energy Information Administration (EIA).The Western Gateway pipeline would help address California’s diminishing refining capabilities. The state is currently on track to lose as much as 20% of its capacity by mid-2026 according to the project’s report.

The new pipeline will be co‑located alongside an existing pipeline from El Paso, Texas with products not only coming from refineries in the middle of the country but from Gulf Coast spots as well, including refineries in Houston and Port Arthur.

“We’re pleased to be able to use our existing assets to leverage growth opportunities for the Arizona and California markets,” Kinder Morgan CEO Kim Dang said. “By utilizing existing pipeline assets across multiple states along the route, we’re uniquely well-positioned to support a refined products transportation solution.”

A map provided about the project, shows where the new Western Gateway pipeline would be constructed connecting Borger, Texas to Phoenix, combining it with Kinder Morgan’s existing pipeline which sends oil from southern CA’s Colton to AZ, but would be “reversed to enable east-to west product flows into California.”

Source: California Post – Breaking California News, Photos & Videos