Phillips 66 Announces Shutdown of L.A. Refinery, Impacting 900 Workers

Phillips 66 announced on Wednesday that it plans to shut down its Los Angeles-area refinery by the end of 2025.
The decision will affect approximately 900 workers, including 600 employees and 300 contractors, the company said.
The refinery, located near the Port of Los Angeles, accounts for roughly eight percent of California’s refining capacity, according to the California Energy Commission.
In a statement, CEO Mark Lashier acknowledged that “the long-term sustainability of our Los Angeles Refinery is uncertain and affected by market dynamics.”
He added that Phillips 66 is “working with leading land development firms to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles.”
Despite the closure, Phillips 66 stressed its continued presence in California and commitment to meeting the state’s energy needs.
“Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands,” Lashier added.
The refinery has served as a critical energy provider to California, Nevada, and Arizona via pipelines and trucks.
The refinery, comprised of two facilities in Wilmington and Carson, has been operational for over 100 years.
The announcement came just days after Gov. Gavin Newsom signed a law aimed at stabilizing gas prices by requiring refineries to maintain specific fuel reserves.
This new legislation is designed to prevent gas price spikes during maintenance shutdowns.
Statistics from AAA show that residents of California face the highest gas prices in the nation—the average cost for regular unleaded gas currently hovers at $4.68 per gallon, substantially above the national average of $3.20.
However, Phillips 66 clarified that its decision to close the Los Angeles refinery was unrelated to the new law.
They expressed support for the state’s efforts to maintain fuel supply levels and reduce price volatility at the pump.
The closure is part of a broader trend in the state’s oil industry, while California pushes to reduce its reliance on fossil fuels.
Gov. Newsom, a strong proponent of California’s climate leadership, has applied pressure on oil companies in recent years, advocating for regulations that limit the profits of the oil industry and advance the state’s transition toward renewable energy.
In 2022, Newsom called a special legislative session to address what he termed while “excessive” profits by oil companies.
California’s commitment to shifting away from fossil fuels is part of its broader strategy to combat climate change and achieve carbon neutrality by 2045.
In order to meet this ambitious goal, the state has mandated that by 2035, all new vehicles sold in the state must be zero-emission, along with phasing out the use of fossil fuels in other sectors.
Phillips 66’s decision follows a similar closure in 2023 when the company shut down its Santa Maria refinery, located northwest of Santa Barbara.
That site was converted to support Phillips 66’s plan to transform its San Francisco-area refinery into a renewable fuels facility.
Once fully operational, the San Francisco facility is expected to become one of the largest renewable fuel production sites in the world.
In California, Phillips 66’s remaining refinery near San Francisco accounts for about five percent of the state’s refining capacity.
This article includes reporting from The Associated Press