HF Sinclair Advances Strategic Evaluation of Multi-Phase Pipeline Expansion to Strengthen Supply Across Western U.S. Markets
HF Sinclair Corporation (NYSE: DINO) has announced that it is undertaking a detailed evaluation of a multi-phased expansion of its Midstream refined products network across the Petroleum Administration for Defense Districts (PADD) 4 and PADD 5. This strategic initiative aims to mitigate growing supply and demand imbalances in critical western markets—particularly in Nevada and several parts of California—that have emerged in response to recent and anticipated refinery closures along the U.S. West Coast.
With its strong operational footprint, diversified refining capacity, and integrated logistics network, HF Sinclair believes it is well positioned to address these regional challenges. The company’s existing infrastructure provides a significant competitive advantage, allowing it to efficiently and reliably deliver refined products where demand is most acute. This potential expansion underscores HF Sinclair’s commitment to optimizing its value chain and supporting long-term market stability in key western fuel markets.
Addressing Supply Challenges in Western Markets
Over the past several years, the western United States has experienced tightening refined product supplies as a result of capacity reductions and refinery conversions to renewable fuels. These developments have particularly affected Nevada and California, where strong economic growth and continued transportation demand have compounded supply pressures. By strategically expanding its Midstream network, HF Sinclair seeks to improve logistics flexibility and ensure a stable and reliable fuel supply to customers across these underserved regions.
According to the company, the multi-phase expansion—subject to Board and regulatory approvals—could ultimately enable the delivery of up to 150,000 barrels per day (bpd) of incremental refined products into western markets. The expansion is designed to leverage and enhance HF Sinclair’s existing pipeline assets, improving operational efficiency while supporting market needs more effectively.
Phase One: Targeting Nevada’s Growing Demand
The first phase of the proposed expansion program will focus on enhancing capacity to move refined products from HF Sinclair’s Rockies production base into Nevada. This phase is projected to add approximately 35,000 bpd of additional throughput and is targeted for completion and operation by 2028.
Key components of this phase include:
- Expanding the Pioneer Pipeline, a jointly owned asset with Phillips 66, running from Sinclair, Wyoming to Salt Lake City, Utah.
- Debottlenecking the UNEV Pipeline, HF Sinclair’s wholly owned line that extends from Salt Lake City, Utah to Las Vegas, Nevada.
These targeted investments are expected to create a more efficient flow of refined products into high-demand regions such as Las Vegas, while also strengthening the company’s ability to serve retail and wholesale customers across the western corridor.
Future Phases: Strengthening Regional Connectivity
In addition to the Nevada-focused first phase, HF Sinclair is also evaluating several complementary projects to further integrate its western Midstream network. These projects include:
- Medicine Bow Pipeline Expansion and Reversal – A proposed project involving the expansion and flow reversal of HF Sinclair’s wholly owned pipeline between Denver, Colorado and Sinclair, Wyoming. This move would enable greater flexibility in supplying product to and from the Rockies region, depending on market dynamics.
- Further Expansion of the Pioneer Pipeline – Building on Phase One, HF Sinclair and Phillips 66 are considering additional capacity enhancements along the Sinclair-to-Salt Lake City corridor to accommodate future growth in refined product demand.
- UNEV Pipeline Expansion – Additional expansion of the Salt Lake City-to-Las Vegas UNEV system to further increase product flow capacity into southern Nevada and surrounding markets.
- Construction of a New Lateral to Reno, Nevada – A new lateral pipeline connecting Salt Lake City to Reno is under evaluation, which would establish a direct and efficient route to serve Northern Nevada’s fuel demand.
Together, these projects represent a coordinated, long-term strategy to reinforce HF Sinclair’s logistics infrastructure, improve system redundancy, and ensure reliable product delivery across the western United States.
Strategic Rationale and Long-Term Vision
HF Sinclair’s proposed Midstream expansion aligns with its broader corporate strategy centered on asset integration, operational excellence, and long-term value creation. The company’s leadership views Midstream growth as a natural extension of its vertically integrated model, which connects refining, marketing, and logistics capabilities into a cohesive value chain.
By expanding its pipeline capacity and geographic reach, HF Sinclair can:
- Enhance market access for its refineries in the Rockies region, optimizing product placement in higher-value western markets.
- Improve supply reliability for customers in regions affected by refinery shutdowns and limited local production.
- Strengthen overall system efficiency, reducing transportation bottlenecks and increasing throughput capacity.
- Support long-term growth through infrastructure investments that create sustainable competitive advantages.
The company also emphasized that these projects are designed with scalability in mind, allowing for incremental capacity additions based on evolving market conditions and customer needs.
Commitment to Responsible Growth
While the initiative focuses on expanding fossil fuel logistics capacity, HF Sinclair has maintained that any infrastructure development will adhere to stringent environmental, safety, and regulatory standards. The company has a track record of managing energy infrastructure responsibly and intends to incorporate sustainability considerations throughout the planning and execution phases.
Moreover, the expansion could indirectly support the energy transition by enhancing supply reliability during a period of significant change in the western fuel mix. With refineries converting to renewable diesel and other low-carbon fuels, maintaining adequate supply of conventional products remains critical to ensuring market stability and supporting an orderly transition.
Positioning for the Future
HF Sinclair’s evaluation of this multi-phased expansion reflects its proactive approach to navigating dynamic energy markets. By leveraging its integrated asset base, strategic partnerships (such as the Pioneer Pipeline joint venture with Phillips 66), and logistical expertise, the company aims to deliver both near-term operational improvements and long-term shareholder value.
If approved, the expansion could represent one of the most significant Midstream capacity upgrades in the western U.S. in recent years. It would not only strengthen HF Sinclair’s position as a leading refined products supplier but also play a vital role in ensuring energy reliability for millions of consumers and businesses across the region.
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