By Ricardo Roura
17 Oct 2024, 12:58 PM EDT
The Phillips 66 oil company announced this Wednesday that a large refinery located in Los Angeles closes operations at the end of 2025although the company clarified that it will continue with activities in California.
The facility, which is located in the Wilmington area, represents approximately 8% of California’s refining capacityaccording to the Golden State Energy Commission.
“Since sustainability long-term outlook for our Los Angeles refinery is uncertain and affected by market dynamicswe 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 Mark Lashier said in a statement.
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“Phillips 66 remains committed to serving California and will continue to take the necessary measures to meet the business and our customer demands,” he added.
The closure will affect 600 employees and 300 contractors that assist in operations, Phillips 66 said, regarding the refinery consisting of two facilities that were built more than a century ago.
This announcement came days after California Governor Gavin Newsom signed a bill to prevent gasoline prices from skyrocketing.
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The bill authorizes energy regulators to require refineries to maintain a certain level of fuel available to avoid sudden increases in gasoline prices when refineries stop operating for maintenance work.
The oil company said that supported the efforts of the state to maintain fuel levels available to meet consumer demand.
The oil company also has a refinery near San Francisco, which represents about 5% of California’s refining capacityaccording to the state Energy Commission.
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Phillips 66 Santa Maria, refinery located about 62 miles northwest of Santa Barbara, closed in 2023 after the company announced plans to turn the site into one of the world’s largest renewable fuel facilities.
Governor Newsom pressured lawmakers to pass oil and gas regulations. In 2022, he called the state Legislature into a special session to pass legislation aimed at cracking down on oil companies for making too much money.
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Newsom often promotes California as a climate leader.
California passed policies in recent years to phase out the sale of new lawnmowers, cars, large trucks and trains that run on fossil fuels.
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