(KTLA) — Phillips 66 on Wednesday announced it would cease operations at its Los Angeles-area refinery in the fourth quarter of 2025.
“With the long-term sustainability of our (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,” said Mark Lashier, chairman and CEO of Phillips 66, 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 650-acre refinery, located next to Interstate 110, has approximately 600 employees and 300 contractors. Lashier said the company would work with local officials to support the displaced workers during the transition.
The oil giant’s announcement comes just days after California Gov. Gavin Newsom signed legislation aimed at preventing gas prices from spiking by requiring refineries to hold a certain amount of fuel in reserve. The goal is to keep gas prices in check when refineries go offline for routine or unscheduled maintenance.
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Phillips 66 oil refinery from Ken Malloy Harbor Regional Park, Wilmington, California, USA. (Photo by: Citizen of the Planet/Education Images/Universal Images Group via Getty Images)
Phillips 66 did not directly address the legislation, or Newsom, an outspoken critic of the oil industry, in its announcement. However, a spokesperson said the recent legislative action was “not a factor” in the company’s decision to shutter the nearly century-old refinery.
“Phillips 66 has been a valuable partner in California’s transition toward a clean energy future,” California Energy Commission Vice Chair Siva Gunda said in a statement to NewsNation affiliate KTLA. “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.”
The refinery’s closure will leave eight petroleum refineries operating in California.
Lashier said his company’s departure offers “an opportunity” to generate new economic development in the area, a sentiment echoed by Los Angeles City Councilman Tim McOskar, whose district includes Harbor City, Harbor Gateway, San Pedro, Watts and Wilmington.
“The closure of a major refinery in Los Angeles is significant,” McOskar said in a statement. “This action marks the end of one story in Wilmington’s industrial era but opens the door to exciting opportunities for new jobs, improved air quality, and innovative economic benefits in the years to come.”
The Associated Press contributed to this report.
