Oil firm Phillips 66 introduced Wednesday that it plans to close down a Los Angeles-area refinery by the tip of 2025, citing market considerations.
The refinery accounts for about 8% of California’s refining capability, in line with the state’s Power Fee. The corporate mentioned it should stay working within the state.
“With the long-term sustainability of our Los Angeles Refinery uncertain and affected by market dynamics, we are working with leading land development firms to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles,” CEO Mark Lashier mentioned in an announcement. “Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands.”
The closure will impression 600 workers and 300 contractors who assist function the refinery, the corporate mentioned in a information launch. The refinery consists of two amenities that have been constructed greater than a century in the past.
The announcement comes days after Democratic Gov. Gavin Newsom signed a legislation geared toward stopping fuel costs from spiking on the pump. The legislation authorizes power regulators to require refineries to keep up a sure stage of gas readily available. The purpose is to keep away from sudden will increase in fuel costs when refineries go offline for upkeep.
Phillips 66’s determination to shut was not associated to the brand new legislation, the corporate mentioned. It mentioned it supported the state’s efforts to maintain sure ranges of gas readily available to fulfill shopper wants.
The corporate additionally operates a refinery close to San Francisco that accounts for about 5% of California’s refining capability, in line with the state Power Fee. Phillips 66 Santa Maria, a refinery that was positioned about 62 miles (100 kilometers) northwest of Santa Barbara, shut down in 2023 after the corporate introduced plans to transform its San Francisco-area web site into “one of the world’s largest renewable fuels facilities.”
Newsom has utilized stress on lawmakers to go oil and fuel rules. He known as the state Legislature right into a particular session in 2022 to go laws geared toward cracking down on oil corporations for making an excessive amount of cash. The Democrat usually touts California’s standing as a local weather chief. The state has handed insurance policies lately to section out the the sale of recent fossil fuel-powered garden mowers, vehicles, huge rigs and trains.
