Phillips 66 announced it will shutter its Los Angeles-area refinery by the end of 2025, just days after the California governor signed a new law tightening restrictions on oil and gas companies.
The refinery accounts for about 8 percent of the refining capacity in the state and employs approximately 600 workers and 300 contractors in the 650-acre facilities.
The Houston-based energy giant denied that the move was related to California’s new bill regulating state refiners that was signed by Gov. Gavin Newsom this week. And while it will cease operations at its LA Refinery, it will still have some assets in the Golden State, including its Rodeo Renewable Energy Complex, which produces renewable diesel.
«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,» said Mark Lashier, chairman and CEO of Phillips 66 in a statement. «Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands.’
California’s new law aims to curb soaring gasoline prices in the state (which average to about $4.66, per AAA) by requiring refineries to store more gas and share resupply and maintenance plans with state officials.
But according to the company, the new bill wasn’t a factor in the move.
«This decision is not related to the recent bill signing. We want to continue to be a trusted and deliberate partner with the state. This announcement is based on consideration of multiple factors, including future options for the site as part of Phillips 66’s ongoing review of its portfolio of assets,» said Phillips 66 spokesperson Al Ortiz in an emailed statement.
«Right now, we’re focused on running the Los Angeles Refinery safely and reliably while it operates. Once we cease operations, we will work with California to supply the market with transportation fuels including CARB-grade gasoline imports and renewable fuels,» Ortiz added.
The company partnered with two real estate development companies, Catellus Development Corp. and Deca Cos., to evaluate the future of the California facility, according to a report by the Houston Business Journal.