HF Sinclair Targets Adding 35,000 Barrels per Day to First Phase of Westline Connect
Key Facts
HF Sinclair aims for the first phase of its Westline Connect project to add about 35,000 barrels per day of capacity to transport Rocky Mountain production supplies to Utah and Nevada, with operations set to begin in 2029. The company said, according to its earnings call as reported by Investing.com, that a final investment decision on this phase is expected in the first quarter of 2027. The additional capacity figure applies to the first phase alone, not the entire project. The plan gives the company time to review project details before finalizing the investment decision, as incoming CEO Steve Ledbetter said there are route and scope options that "could lead to a better outcome." He added that the scope is still being defined, leaving execution details under review ahead of the expected decision date. The company intends to fund the project with cash on hand and operating cash flow.
The broader initiative dates to HF Sinclair's announcement in October 2025 of multi-phase expansion projects aimed at western markets. The company estimated at the time that the proposals, if approved by its board and regulators, could provide additional supplies of up to 150,000 barrels per day across the proposed phases combined. That ceiling differs from the about 35,000 barrels per day associated with the first phase of Westline Connect because the two figures describe different scopes. The company said the initiative aims to address growing supply-demand imbalances in key western markets, particularly Nevada and several California markets. HF Sinclair linked those imbalances to refinery closure announcements on the West Coast, without specifying in its statement how much supply would leave the market. This backdrop helps explain the first phase's focus on delivering Rocky Mountain production to markets in Utah and Nevada.
The initial plan announced in 2025 included expanding the Pioneer pipeline between Sinclair, Wyoming, and Salt Lake City, Utah, a line owned by HF Sinclair in partnership with Phillips 66. It also included removing bottlenecks on the UNEV pipeline, which is wholly owned by HF Sinclair and extends to Las Vegas. These two routes place the project within a broader network for transporting refined products across the western United States, rather than a single pipeline. The Westline Connect website describes the project as aiming to modernize refined-products infrastructure in the Mountain West, including pipelines, terminals, refineries and pump stations. In August 2026, HF Sinclair and its partners made a final investment decision to proceed with the Western Gateway project, which the company described as complementary to Westline Connect. The proposed Western Gateway consists of a 1,300-mile pipeline system with a design capacity of 230,000 barrels per day, with completion targeted for 2029, subject to permits and regulatory approvals.
The project review coincided with local discussion of its impacts and implementation requirements; on October 13, 2026, the Salt Lake City Council heard a briefing from HF Sinclair on construction of the proposed Westline Connect pipeline. Council members raised concerns about drinking water, watershed protection, seismic risks, infrastructure safety and regulatory compliance. Regulatory approvals remain part of the broader picture for the proposed projects, as the company tied its estimate of additional multi-phase supplies to approval by its board and regulators. On the earnings call, Ledbetter again pointed to route and scope options that could improve the project's outcome, without announcing a final route or settled scope. The company plans to use cash on hand and operating cash flow to fund the project, while a final investment decision on the first phase remains expected in the first quarter of 2027. The announced schedule targets operations beginning in 2029.
The project update came as HF Sinclair reported third-quarter 2026 results, and the company scheduled an online conference to discuss the results on October 28 at 8:30 a.m. Eastern Time. Adjusted net income attributable to the company's shareholders was $2.079 billion in the third quarter, compared with $459 million in the same quarter of 2025. CEO Franklin Myers said quarterly performance reflected the company's focus on "safe and reliable execution" across its businesses, adding that it returned $572 million to shareholders through dividends and share repurchases. The stock rose 4.87% in premarket trading after the results were announced on October 28, according to Investing.com. DINO shares closed at $114.21 on October 27. The moves came in the context of the earnings announcement; the final investment decision on the first phase of Westline Connect remains expected in the first quarter of 2027, with operations targeted for 2029.