U.S. refining giant Phillips 66, which will close its LA refinery later this year, will lay off in December most of the workers at the plant, Reuters reports, citing sources with knowledge of the plans.
Last October, Phillips 66 said it would shut down its refinery in the Los Angeles area in the fourth quarter of 2025, due to “market dynamics.”
Approximately 600 employees and 300 contractors currently operate the Los Angeles-area refinery, Phillips 66 said when it announced the closure.
“We understand this decision has an impact on our employees, contractors and the broader community,” Mark Lashier, chairman and CEO of Phillips 66, said in October.
“We will work to help and support them through this transition.”
Lashier added that the long-term sustainability of the Los Angeles Refinery is uncertain and affected by market dynamics.
The reduction of the workforce, to begin in December, will affect most employees, while a few retained workers would be transferred to the Los Angeles marine oil terminal operated by Phillips 66, according to Reuters’s sources.
A spokesperson for the company told the newswire on Thursday, “Since the announcement was made to idle these facilities, Phillips 66 has stated its commitment to helping employees and contractors through this transition.”
Phillips 66’s LA refinery will not be the only one to cease operations in California soon.
Last month, Valero Energy said it 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.
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
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