Oil firm Phillips 66 introduced Wednesday that it plans to close down a Los Angeles-area refinery by the top 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 stated it would stay working within the state.
“With the long-term sustainability of our Los Angeles Refinery unsure and affected by market dynamics, we’re working with main land growth corporations to guage the long run use of our distinctive and strategically situated properties close to the Port of Los Angeles,” CEO Mark Lashier stated in a press release. “Phillips 66 stays dedicated to serving California and can proceed to take the required steps to fulfill our industrial and buyer calls for.”
The closure will impression 600 staff and 300 contractors who assist function the refinery, the corporate stated in a information launch. The refinery consists of two amenities that had been constructed greater than a century in the past.
The announcement comes days after Democratic Gov. Gavin Newsom signed a regulation geared toward stopping gasoline costs from spiking on the pump. The regulation authorizes power regulators to require refineries to take care of a sure stage of gas available. The aim is to keep away from sudden will increase in gasoline costs when refineries go offline for upkeep.
Phillips 66’s resolution to shut was not associated to the brand new regulation, the corporate stated. It stated it supported the state’s efforts to maintain sure ranges of gas 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 situated about 62 miles (100 kilometers) northwest of Santa Barbara, shut down in 2023 after the corporate introduced plans to transform its San Francisco-area website into “one of many world’s largest renewable fuels amenities.”
Newsom has utilized stress on lawmakers to cross oil and gasoline rules. He referred to as the state Legislature right into a particular session in 2022 to cross laws geared toward cracking down on oil firms for making an excessive amount of cash. The Democrat typically touts California’s standing as a local weather chief. The state has handed insurance policies lately to section out the the sale of latest fossil fuel-powered garden mowers, automobiles, massive rigs and trains.
