Phillips 66 has announced plans to shut down its Los Angeles-area refinery by the end of 2025, a move that will affect 600 employees and 300 contractors who work at two large facilities in Wilmington and Carson.
The decision, which the company attributes to uncertainty about the refinery’s long-term sustainability, will result in the closure of both the crude-oil processing site in Carson and the Wilmington facility that refines the oil into finished products.
In a statement, Phillips 66 CEO Mark Lashier acknowledged the significant impact on workers and the local community.
“We understand this decision has an impact on our employees, contractors, and the broader community,” he said.
Lashier added that the company will support those affected during the transition.
The company cited market dynamics as the primary factor behind the closure. Despite the shutdown, Phillips 66 plans to continue supplying California’s fuel market through sources within and outside its refining network, including renewable diesel and sustainable aviation fuel from its Rodeo Renewable Energy Complex in the San Francisco Bay Area.
The announcement comes shortly after California Governor Gavin Newsom signed a new law aimed at preventing sudden spikes in gas prices when refineries experience unplanned outages. However, Phillips 66 spokesperson Al Ortiz clarified that the decision was not related to the new legislation, stating it was driven by the refinery’s low profitability compared to other company assets.
Phillips 66 is exploring future uses for the 650-acre property in collaboration with land development firms. Local officials, including L.A. City Councilman Tim McOsker, expressed optimism about potential new economic opportunities for the region, including job creation and improved air quality.
While some community members expressed concerns about the refinery’s closure and its effects on workers, others, like environmental advocates, questioned whether the closure would lead to meaningful environmental improvements.
With input from CBS News and Daily Breeze.
