LOS ANGELES — Oil company Phillips 66 announced Wednesday that it plans to close a refinery in the Los Angeles area by the end of 2025, citing market concerns.
The refinery represents about 8% of California’s refining capacity, according to the state Energy Commission. The company said it will remain operating in the state.
“With the long-term sustainability of our Los Angeles refinery uncertain and affected by market dynamics, we are working with leading land developers to evaluate the future use of our unique property strategically located near the Port of Los Angeles,” CEO Mark Lasher said in a statement. “Philips 66 remains committed to serving California and will continue to take steps to meet our business and customer requirements.”
The company said in a press release that the closure will affect 600 employees and 300 contractors who help operate the refinery. The refinery consists of two facilities built more than a century ago.
This announcement comes days after Democratic Governor Gavin Newsom’s decision I signed the law It aims to prevent gas prices from rising at the pump. The law allows energy regulators to require refiners to maintain a certain level of available fuel. The goal is to avoid sudden increases in gas prices when refineries stop operating for maintenance.
The company said that the decision to close Philips 66 has nothing to do with the new law. She said she supports the state’s efforts to keep certain levels of fuel on hand to meet consumer needs.
The company also operates a refinery near San Francisco that accounts for about 5% of California’s refining capacity, according to the state Energy Commission. The Phillips 66 Santa Maria refinery, which was located about 62 miles (100 kilometers) northwest of Santa Barbara, closed in 2023 after the company announced plans to transform its San Francisco-area site into “one of the largest renewable fuel facilities in the world.” “. “
Newsom has put pressure on lawmakers to pass oil and gas regulations. The state legislature called for a special session in 2022 to issue legislation aimed at this Suppression of oil companies To earn a lot of money. The Democrat often touts California’s position as a climate leader. The state has passed policies in recent years to phase out the sale of new fossil fuels Lawn mowers, Cars, Great platforms and Trains.
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This story has been corrected to show that the Los Angeles-area refinery represents about 8% of California’s refining capacity, not that it produces that amount of crude oil in the state. The same error was corrected for the San Francisco area refinery.
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