Oil company Phillips 66 says it will shut down Los Angeles-area refinery

LOS ANGELES — Oil company Phillips 66 announced Wednesday that it plans to shut down a Los Angeles-area refinery by the end of 2025, citing market concerns.

The refinery accounts for about 8% of California's refining capacity, according to the state's Energy Commission. The company indicated it will remain operating in the state.

“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,” CEO Mark Lashier said in a statement. “Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands.”

The closure will impact 600 employees and 300 contractors who help operate the refinery, the company said in a news release. The refinery consists of two facilities that were built more than a century ago.

The announcement comes days after Democratic Gov. Gavin Newsom signed a law aimed at preventing gas prices from spiking at the pump. The law authorizes energy regulators to require refineries to maintain a certain level of fuel on hand. The goal is to avoid sudden increases in gas prices when refineries go offline for maintenance.

Phillips 66 said it supported the state's efforts to keep certain levels of fuel on hand to meet consumer needs.

The company also operates a refinery near San Francisco that accounts for about 5% of California’s refining capacity, according to the state Energy Commission. Phillips 66 Santa Maria, a refinery that was located about 62 miles (100 kilometers) northwest of Santa Barbara, shut down in 2023 after the company announced plans to convert its San Francisco-area site into “one of the world’s largest renewable fuels facilities.”

Newsom has applied pressure on lawmakers to pass oil and gas regulations. He called the state Legislature into a special session in 2022 to pass legislation aimed at cracking down on oil companies for making too much money. The Democrat often touts California's status as a climate leader. The state has passed policies in recent years to phase out the the sale of new fossil fuel-powered lawn mowers, cars, big rigs and trains.