Two days after California Governor Gavin Newsom signed ABX2-1 into law, Phillips 66 announced it would close its Los Angeles-area refinery, dealing a significant blow to California’s limited refining capacity. The company plans to cease operations at the refinery in the fourth quarter of 2025, affecting approximately 600 employees and 300 contractors.
Refinery shutdowns only affect not only consumers, but also producers, especially those that maintain contracts with a refinery that is being shuttered or is physically connected by pipeline to that refinery. CIPA’s subsidiary, the Independent Producers Exchange (IPEX), helps small producers that do not have in-house marketers to market their crude to refineries. Please contact Rock Zierman at rock@cipa.org if you need such services.
Phillips 66 CEO Mark Lashier acknowledged the impact of the closure of their refinery, stating, “We understand this decision has an impact on our employees, contractors, and the broader community. We will work to help and support them through this transition.”
The refinery’s closure will further strain California’s fuel supply, which is already facing challenges due to the few refineries operating in the state.
With this closure on the horizon, the California Energy Commission acknowledged the need to expand fuel supply capabilities.
The closure of the Phillips 66 Los Angeles refinery highlights the growing challenges in California’s fuel market and raises concerns about job losses and future energy security in the region.