Sun Belt Connector

Late last month, HF Sinclair joined ONEOK, Phillips 66 and Kinder Morgan in planning pipeline projects to move more refined products to Western markets. It’s too soon to say how many of these projects will come to fruition, but what’s certain is that the effort to transport large volumes of products west from PADDs 2, 3 and 4 will significantly impact refinery economics across vast swaths of the U.S. In today’s RBN blog, we‘ll discuss the pipeline projects and how they will affect market dynamics.

A few days ago, HF Sinclair joined ONEOK, Phillips 66 and Kinder Morgan in planning pipeline projects to move more refined products to Western markets. It’s too soon to say how many of these projects will come to fruition, but what’s certain is that the effort to transport large volumes of products west from PADDs 2, 3 and 4 will significantly impact refinery economics across vast swaths of the U.S. In today’s RBN blog, we‘ll discuss the pipeline projects and how they will affect market dynamics.

Less than two months after ONEOK unveiled plans for a big new refined products pipeline from El Paso to the Phoenix area, Phillips 66 and Kinder Morgan have jointly proposed an even more extensive project of their own: the Western Gateway Pipeline — now the focus of a binding open season — would enable flows from the St. Louis area to Southern California. In today’s RBN blog, we’ll discuss the project and what’s driving the race to move more refined products west from PADDs 2 and 3 to PADD 5.

Strong demand for refined products (especially jet fuel) in Arizona and refinery closures in Southern California have spurred the development of a new refined products pipeline from West Texas to the Phoenix area. ONEOK, whose acquisition of Magellan Midstream Partners made it a player in refined products, has announced an open season for the proposed Sun Belt Connector pipeline, which would expand PADD 2 and PADD 3 refiners’ access to premium markets out West. In today’s RBN blog, we discuss ONEOK’s plan and how it could impact refined products markets.