Los Angeles refinery of oil company Phillips 66 to shut by 2025 end

LOS ANGELES, California: Oil company Phillips 66 has announced plans to shut down its Los Angeles-area refinery by the end of 2025, citing market challenges and uncertainty about its long-term sustainability.

The refinery, which contributes about eight percent of California's refining capacity, is situated near the Port of Los Angeles and has operated for more than a century.

Phillips 66 CEO Mark Lashier emphasized that the company is collaborating with land development firms to explore future uses for the site. Despite the refinery's closure, the company will continue to operate in California. "Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands," Lashier said in a statement.

The closure will affect around 600 employees and 300 contractors who operate the refinery. The company did not link the decision to recent state legislation, which aims to prevent sharp increases in gas prices by requiring refineries to maintain minimum fuel reserves. Democratic Governor Gavin Newsom signed this law just days before the announcement.

Phillips 66 stated that its decision was unrelated to the new regulation and supported California's efforts to stabilize the fuel supply. The company also operates a refinery near San Francisco, which accounts for about five percent of the state's refining capacity, and recently converted another facility into a renewable fuels plant.

California has been ramping up regulations on oil and gas companies in recent years. Governor Newsom has been vocal about cracking down on excess profits in the oil sector, convening a special legislative session in 2022 to push for stricter regulations.

He has also positioned California as a leader in climate action, implementing policies to phase out fossil fuel-powered vehicles, machinery, and transportation systems.