SACRAMENTO, Calif. —
Phillips 66 announced Wednesday it plans to close its Los Angeles-area refinery sometime in 2025.
About 600 workers and 300 contractors are employed at the refinery, the company said. According to a press release, the company will “work to help and support” the employees and contractors through the transition process.
“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,” Phillips 66 CEO and Chairman Mark Lashier said. “Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands.”
The announcement comes days after Gov. Gavin Newsom signed legislation aimed at keeping gas prices from spiking. Under the law, energy regulators have the authority to require refineries to keep a certain amount of fuel on hand.
The new bill came after a report from the state’s Division of Petroleum Market Oversight that showed spikes in gas prices are caused by increases in global crude oil prices and unplanned refinery outages.
Following analysis from the state’s energy commission, Phillips 66 said it supports California’s “efforts in maintaining current levels and potentially increase supplies to meet consumer needs.”
The company said it will supply gas sourced inside and outside its refining network along with diesel and airplane fuel from its Rodeo facility in Contra Costa Country.
A Phillips 66 spokesperson told Politico Wednesday the closing of the refinery was not in response to Newsom signing the law.
A request for comment from the governor's office was not immediately returned. ABC10 was instead given a statement from the California Energy Commission.
The following statement is from Siva Gunda, vice chair of the California Energy Commission:
“Phillips 66 has been a valuable partner in California’s transition toward a clean energy future. The company has committed to minimizing impacts on Californians while they continue to meet fuel demands, maintain reliable supplies, and ensure they take necessary steps to fulfill both commercial and customer needs. Their plan to replace the production lost from the refinery closure is an example of the type of creative solutions that are needed as we transition away from fossil fuels. We remain dedicated to collaborating with industry leaders to secure an affordable and reliable fuel supply for all consumers as we move forward.”
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