Phillips 66 announces plans to close Wilmington oil refinery
Philips 66, the massive oil company that operates across the United States, says that they will be closing their refiner in Wilmington next year after California Gov. Gavin Newsom signed a bill into law that looks at preventing gas prices from spiking.
The company says that the closure, which will come in the fourth quarter of 2025, will impact 600 employees and 300 contractors that operate out of the facility.
"We understand this decision has an impact on our employees, contractors and the broader community," said Mark Lashier, CEO and chairman for the company. "We will work to help and support them through this transition."
The huge refinery includes a crude-oil processing plant in Carson and the main facility in Wilmington, where the oil is finalized into "finished products," officials said. They are linked by a nearly five-mile pipeline.
Despite plans to close by the end of 2025, the company will continue working within California to "supply fuel markets and meeting ongoing consumer demand" by utilizing sources inside and outside of its refining network as well as "renewable and sustainable aviation fuels from its Rodeo Renewable Energy Complex in the San Francisco Bay Area."
"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," Lashier further said.
Phillips 66 has already contacted two real estate development firms in order to evaluate the future of the 650-acre plots of land that the refinery sits upon in Wilmington and Carson.
Following the news, California Energy Commission Vice Chair Siva Gunda issued a statement that read in part: "Phillips 66 has been a valuable partner in California's transition toward a clean energy future. The company has committed to minimizing impacts on Californians while they continue to meet fuel demands, maintain reliable supplies, and ensure they take necessary steps to fulfill both commercial and customer needs. Their plan to replace the production lost from the refinery closure is an example of the type of creative solutions that are needed as we transition away from fossil fuels."
Tim McOsker, Los Angles City Councilman whose district includes Wilmington, said that the closure will provide new opportunities to the region, as well as "improved air quality" and "innovate economic benefits." He says that his office will be prepared to help workers affected by the closure.