Phillips 66 has announced plans to close its Los Angeles-area refinery in 2025, a decision driven by concerns over the facility’s long-term sustainability. The announcement, made on October 16, 2024, highlights the company’s response to evolving market dynamics and the need to adapt to changing energy demands.
Mark Lashier, the chairman and CEO of Phillips 66, acknowledged the significant impact this closure will have on the local workforce, stating, “We understand this decision has an impact on our employees, contractors, and the broader community. We will work to help and support them through this transition.” The Los Angeles refinery employs approximately 600 people and relies on around 300 contractors for its operations.
The refinery consists of two main facilities: a crude-oil processing plant located in Carson and a separate facility in Wilmington where the processed oil is converted into finished products. These two sites are interconnected by a five-mile pipeline, which plays a crucial role in the refining process.
Lashier elaborated on the company’s future plans, indicating that Phillips 66 is collaborating with leading land development firms to explore alternative uses for the strategically located properties near the Port of Los Angeles. “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,” he said.
Despite the impending closure, Phillips 66 reassured consumers that it will continue to meet fuel demands in California. The company plans to supply gasoline from both its refining network and external sources. Additionally, it will offer renewable diesel and sustainable aviation fuels from its Rodeo Renewable Energy Complex situated in the San Francisco Bay area.
The closure has prompted responses from local officials, including Los Angeles City Councilman Tim McOsker, whose district encompasses the Wilmington area. McOsker described the closure as “significant,” but also emphasized the potential for new opportunities that could arise from the transition. He stated, “This opens the door to exciting opportunities for new jobs, improved air quality, and innovative economic benefits in the years to come.”
McOsker further noted that Phillips 66 has committed to assisting its employees during this transition period. He has also reached out to the city’s Economic and Workforce Development Department to ensure support for those affected by the closure. “We will be working closely with Phillips 66, their employees, and our community to make sure that we’re supporting all who are impacted,” he said.
The decision to close the Los Angeles refinery reflects broader trends in the energy sector, where companies are increasingly re-evaluating their operations in light of sustainability goals and the transition to cleaner energy sources. As the industry evolves, Phillips 66’s actions may set a precedent for other refineries facing similar challenges.
As the closure date approaches, stakeholders will be closely monitoring the situation to understand its implications for the local economy, job market, and environmental landscape. The future of the refinery site could pave the way for new developments that align with California’s ambitious climate goals and economic strategies.
Phillips 66’s commitment to supporting its workforce during this transition is crucial as the community prepares for the changes ahead. The collaboration between the company, local government, and development firms will play a significant role in shaping the future of the area and ensuring a smooth transition for those impacted by the refinery’s closure.
