U.S. Refining Giant Valero to Shut California Refinery

U.S. Refining Giant Valero to Shut California Refinery | OilPrice.com

`;
document.write(write_html);
}

Breaking News:

ByTsvetana Paraskova– Apr 17, 2025, 7:30 AM CDT

Valero Energy plans to idle, restructure, or cease refining operations at its Benicia Refinery in California by the end of April 2026, as one of the biggest U.S. refiners continues to evaluate strategic alternatives for its operations in California.

In connection with the evaluation of these strategic alternatives, Valero took a combined pre-tax impairment charge of $1.1 billion for its California operations. The impairment was recorded for the Benicia and Wilmington refineries and is expected to be treated as a special item and excluded from the adjusted earnings for the first quarter of 2025. Also included in this amount is the recognition of expected asset retirement obligations of $337 million as of March 31, 2025, Valero said in a statement.

‘;
document.write(write_html);
}

“We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period,” said Lane Riggs, Chairman, CEO and President of Valero.

Valero’s Benicia refinery, northeast of San Francisco, has a throughput capacity of 170,000 barrels per day (bpd), while the Wilmington refinery in the area of Los Angeles has a throughput capacity of 135,000 bpd.

Valero’s decision to shut one of its two refineries in California comes on the heels of other refinery closures in the state, which is pursuing increased regulation on emissions and the sale of gasoline vehicles.

In one of the most recent closures, Phillips 66 announced the closure of a refinery in the Los Angeles area. The refiner cited uncertain long-term sustainability of the Los Angeles Refinery affected by market dynamics.

The Energy Information Administration (EIA) expects U.S. refinery capacity to be 17.9 million bpd at the end of 2025, about 3% less than at the beginning of this year, with LyondellBasell’s Houston oil refinery closing, and the Los Angeles refinery of Phillips 66 shutting down operations.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com

Join the discussion | Back to homepage

`;
document.write(write_html);
}

FACEBOOK
Twitter
GOOGLE+
LINKEDIN
REDDIT
PRINT

`;
document.write(write_html);
}