A Multi-State Pipeline Won’t Reach the West Until 2029. Nevada’s Only Refinery Is Entering Production Now.

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Issued on behalf of Sky Quarry Inc. (NASDAQ: SKYQ)

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NEW YORK, Aug. 03, 2026 (GLOBE NEWSWIRE) — American News Group News Commentary – As Nevada works to shore up its fuel security, the state’s Fuel Resiliency Committee has weighed two very different approaches to the same problem: a large, long-term pipeline that would pull supply in from other regions, and existing, in-state refining capacity that is available far sooner. The pipeline, the proposed Western Gateway system, is being advanced by energy majors Phillips 66 (NYSE: PSX) and Kinder Morgan, Inc. (NYSE: KMI), and would not enter service until mid-2029. The in-state option centers on Sky Quarry Inc. (NASDAQ: SKYQ) and its Foreland refinery, Nevada’s only operating refinery, which has just entered its production phase, putting the timeline contrast, and the case for supply diversity, into sharp relief against a refining sector where names like Valero (NYSE: VLO) and HF Sinclair (NYSE: DINO) are enjoying a historic run.

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Key Takeaways

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The Timeline Contrast at the Center of the Story

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Nevada is one of the most fuel-import-dependent states in the country, consuming large quantities of gasoline, diesel, and other refined products while historically relying on supply piped or trucked in from neighboring regions. After a series of fuel-supply disruptions, the state moved fuel resiliency up its policy agenda, and its Fuel Resiliency Committee has examined how best to reduce that dependence. Two options on the table illustrate the fundamental trade-off between scale and speed.

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On one side is the proposed Western Gateway Pipeline, advanced by Phillips 66 and Kinder Morgan. The system would connect Midwest and Gulf Coast refinery supplies to Arizona and California, with access to Las Vegas through Kinder Morgan’s existing CALNEV pipeline. It is a potentially important long-term source of additional fuel for western markets, but its developers are currently targeting a mid-2029 in-service date, and the project remains subject to definitive agreements, joint-venture arrangements, and board approvals. In other words, meaningful relief from Western Gateway is, at the earliest, years away.

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On the other side is infrastructure that already exists. That timeline gap is what elevates the near-term relevance of Sky Quarry and its Foreland refinery. A pipeline of Western Gateway’s scale is a multi-year undertaking; a refinery that is already permitted, built, and entering production does not carry the same construction and approval runway before it can contribute to in-state supply.

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What Sky Quarry Actually Controls

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Sky Quarry controls the Eagle Springs / Foreland Refinery near Ely, Nevada, through its wholly owned subsidiary, Foreland Refining Corporation. The company describes it as the only permitted, operating refinery in the State of Nevada, with a nameplate capacity of approximately 5,000 barrels per day and more than 100,000 barrels of total storage capacity. In June 2026, Sky Quarry announced that the refinery was entering its production phase, with operations expected to commence following the completion of repairs, maintenance, and commissioning activities, and reported approximately 10,000 barrels of crude and in-process inventory on-site as it moved toward that transition.

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The significance is one of positioning rather than scale. Foreland is not going to single-handedly solve Nevada’s fuel needs, and it is a small facility relative to the majors. But it represents existing, in-state infrastructure capable of processing regional crude into the diesel, vacuum gas oil, naphtha, and asphalt that Nevada’s transportation, mining, construction, and industrial sectors rely on, without the logistics and cost penalties of long-haul imports. To lead the subsidiary through this phase, Sky Quarry appointed refining veteran Ray Hansen, who brings more than three decades of industry experience, including senior roles at HF Sinclair and Chevron, as President of Foreland Refining.

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Diversity, Not Rivalry

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It would be a mistake to frame Western Gateway and Sky Quarry as competitors, and the more useful reading is the one the committee’s discussion ultimately reinforced: the value of supply diversity. A large interstate pipeline and a small in-state refinery solve different parts of the same problem on different timelines. Western Gateway, if it advances through its agreements and approvals, could strengthen Nevada’s access to outside fuel supplies over the longer term. Sky Quarry, already in production, could provide a more immediate and localized component of the state’s fuel-resiliency strategy while those larger projects remain under development.

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That distinction matters for how investors read Sky Quarry’s opportunity. The company is not betting on winning a head-to-head contest against energy majors; it is positioned to fill a nearer-term, in-state role in a market that the state itself has identified as strategically vulnerable. With Western Gateway several years from its targeted completion, Sky Quarry’s existing refinery, storage, and regional relationships could give it a meaningful part to play in addressing Nevada’s fuel needs today.

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The Sector Backdrop

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Sky Quarry’s near-term case is strengthened by a broader structural shift: Western U.S. refining capacity has been contracting as refineries close or announce closures, even as demand for gasoline, diesel, and jet fuel has stayed resilient. When regional supply tightens and demand does not, the refining assets that remain become more valuable and harder to replace. That dynamic is a core part of Sky Quarry’s own thesis for Foreland, and it has also driven a historic run in the established refining sector, where elevated crack spreads have lifted margins across the industry.

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The four companies below are referenced solely as market and sector context, span the pipeline and refining sides of the fuel-supply chain, and are far larger and more established than Sky Quarry. They are not peers, competitors, or financial comparables of Sky Quarry Inc., and their results are not indicative of Sky Quarry’s prospects. All figures are approximate and subject to change.

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Phillips 66 (NYSE: PSX)

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Phillips 66 is a diversified downstream energy company with refining, midstream, chemicals, and marketing operations, and it is one of the two majors advancing the proposed Western Gateway Pipeline. Its shares have participated in the strong 2026 run across the refining and downstream complex. Phillips 66 is included here because it is a direct principal in the very pipeline project the Nevada committee weighed against Sky Quarry’s in-state option, making it the clearest illustration of the large-scale, longer-horizon approach to Western fuel supply.

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Kinder Morgan, Inc. (NYSE: KMI)

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Kinder Morgan operates one of the largest energy infrastructure networks in North America, including the CALNEV pipeline that would provide Western Gateway access to the Las Vegas market. As the midstream partner in the proposed project, Kinder Morgan represents the pipeline-and-logistics dimension of Nevada’s fuel-supply question. It is referenced as the second principal behind Western Gateway, and as a reminder that the long-term solution the committee considered depends on major new interstate infrastructure that is still years from service.

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Valero Energy (NYSE: VLO)

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Valero Energy is one of the largest independent petroleum refiners in North America and a bellwether for the sector. In 2026 it has traded near multi-year highs, buoyed by elevated refining margins as constrained capacity and resilient demand widened crack spreads. Valero is included as the blue-chip reference point for the refining economics that also underpin Sky Quarry’s Foreland thesis, on a vastly larger and more established scale, illustrating the value the market is currently assigning to refining capacity.

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HF Sinclair (NYSE: DINO)

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HF Sinclair is an independent refiner with a footprint concentrated in the Rockies, Southwest, and Pacific Northwest, operating refineries across states including Utah, Wyoming, and New Mexico, the same broad Intermountain West market Foreland serves. Its shares have traded near 52-week highs amid the refining rally. HF Sinclair is the closest large-cap regional analogue to Sky Quarry’s geographic positioning, and it is also the former employer of Foreland’s new president, underscoring the depth of Western refining experience Sky Quarry has brought in, though the two operate at vastly different scales.

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What to Watch

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For Sky Quarry, the near-term markers are concrete and sequential. The most important is the refinery itself: the commencement and reliability of production at Foreland following its repair, maintenance, and commissioning work is the precondition for everything else, including customer deliveries, refining margins, and cash flow. From there, watch for any developments tied to Nevada’s fuel-resiliency initiatives, for progress on securing in-state crude supply, and for how Sky Quarry’s role is characterized as the state advances its broader strategy alongside longer-term projects like Western Gateway.

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The macro backdrop is supportive: Western refining capacity is shrinking, demand has stayed resilient, refining margins are elevated, and the state has explicitly identified fuel resiliency as a priority. Against a long-horizon pipeline still years from service, an existing, in-state, now-producing refinery occupies a genuinely distinctive position in that conversation. The cautions are equally real. Sky Quarry is a small-cap company transitioning into production, and execution risk is front and center: the refinery must run reliably, in-state crude supply must be secured, and none of the state-level or federal initiatives it may participate in are assured. But the timeline contrast at the heart of this story, existing capacity available now versus major infrastructure years away, is exactly why Sky Quarry’s near-term role is worth watching as Nevada works to secure its fuel future.

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Article Source:

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[1] Sky Quarry Inc., “Sky Quarry Announces Foreland Refinery’s Entrance into the Production Phase” (June 22, 2026) and Nevada fuel-resiliency disclosures (2026).

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American News Group | [email protected]

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DISCLAIMER

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Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. This article is being distributed for Market Equities Limited, a company incorporated under the laws of Ireland (“MEL”), which wholly owns and operates American News Group. MEL has been paid a fee for Sky Quarry Inc. advertising and digital media from Creative Direct Marketing Group (“CDMG”). MEL also expects to receive further compensation as part of an ongoing digital media effort to increase visibility for the company. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. No further notice will be given, but let this disclaimer serve as notice that all material, including this article, has been reviewed and approved on behalf of Sky Quarry Inc. by CDMG.

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Cautionary Note Regarding Forward-Looking Statements. This publication may contain forward-looking statements, including statements regarding the Foreland refinery’s entry into and commencement of production, its capacity and utilization, Sky Quarry’s potential role in Nevada’s fuel-resiliency strategy, the proposed Western Gateway Pipeline and its timing and completion, and the company’s business prospects. Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties, including operational, technical, permitting, financing, commodity-price, refining-margin, and market risks. The commencement and reliability of refinery operations, the securing of in-state crude supply, and any participation in state or federal fuel-resiliency initiatives are not assured. The Western Gateway Pipeline is a separate third-party project that remains subject to definitive agreements, joint-venture arrangements, and board approvals, and its description here is based on public statements by its developers. Actual results may differ materially from those projected. Readers should refer to Sky Quarry Inc.’s filings with the U.S. Securities and Exchange Commission for a full discussion of risk factors.

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Cautionary Note Regarding Referenced Companies. References to Phillips 66, Kinder Morgan, Valero Energy, and HF Sinclair are provided solely as market and sector context. Those companies are not peers, competitors, or financial comparables of Sky Quarry Inc., and differ substantially in size, stage, capitalization, operations, and business model. Their projects, operations, and share performance describe those companies only, are not indicative of Sky Quarry Inc.’s prospects or results, and must not be relied upon in evaluating the profiled company. No partnership, affiliation, or endorsement is implied. Commodity prices, refining margins, and industry data cited describe the sector generally and are third-party estimates subject to change.

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Eagle Eye Disclosure. Eagle Eye is an investor signal-intelligence platform affiliated with the publisher of this article, and this reference constitutes promotion of an affiliated product. Eagle Eye is not a broker-dealer, and nothing in the platform or in this article is financial, investment, tax, or legal advice. Data provided in the platform is for informational purposes only and may be delayed. Always do your own research before making any investment decision.

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