Phillips 66 Shuts LA Refinery, Cutting 20% of California's Gasoline Supply
Phillips 66 has started the shutdown of its Los Angeles refinery, significantly impacting California's gasoline supply. The closure, along with Valero's Benicia refinery, accounts for about 20% of the state's gasoline supply.
The process began in September 2023, with the refinery receiving its last waterborne crude on September 30. Final crude processing is expected to be completed by mid-October. Phillips 66 anticipates booking around $100 million in charges related to the idling of the 139,000 bbl/day refinery by the end of the year. This includes approximately $30 million in asset retirement charges in its Midstream segment and around $70 million in charges for future groundwater mitigation in its Refining segment. The refinery is expected to cease operations by the end of 2025.
The closure of these refineries will have a substantial impact on California's gasoline supply, with the state losing around 20% of its production capacity. Phillips 66 has begun the process of winding down its operations, with significant charges expected to be booked by the end of the year.
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