California has lost two major oil refineries in the past year, alongside much of the Asian fuel supplies that landed on its coast. To address this gap, Phillips 66 and two partners have officially sanctioned the $5 billion Western Gateway Pipeline system. This 900-mile project aims to ferry 230,000 barrels a day of gasoline, jet fuel, and diesel from the Texas Panhandle to Phoenix and Los Angeles.

In Phoenix, the new pipe will connect with an existing 500-mile pipeline ending in Colton, Calif. One partner, Kinder Morgan, owns the segment between Arizona and California and will reverse the flow to send fuel into the Golden State. Another partner, HF Sinclair, holds a minority stake. The companies plan to move fuels from refineries in Texas, Oklahoma, and near St. Louis, Mo.

The fuel is sorely needed as the state faces the highest pump prices in the country. California lost 20% of its capacity to turn crude oil into fuel after Phillips 66 closed its 139,000 barrel-a-day Los Angeles refinery and Valero shuttered its 145,000 barrel-a-day Benicia facility.