Refining operations at Valero Energy's 149,000 b/d Benicia refinery in Northern California will "cease" by the end of April 2026, Valero said in its first-quarter 2025 earnings report Thursday.
A company spokesperson was not available for comment.
Last week, the company said it would "idle, restructure or cease refining operations at Benicia, and that it was evaluating strategic options for its California assets, including its 93,500 b/d Wilmington facility near Los Angeles.
The Benicia facility represents 8.94% crude oil capacity for the state of California, according to data from the California Energy Commission.
"In late March 2025, we approved a plan with respect to the operations at our Benicia Refinery and currently intend to cease refining operations by the end of April 2026," according to the earnings statement. "In addition, we considered strategic alternatives for our remaining operations in California."
Valero reported a refining operating income loss for the U.S. West Coast at $1.133 billion for the first quarter. Both the Benicia and Wilmington facility near Los Angeles were evaluated for an impairment loss of $1.1 billion for the three months ended March 31, 2025.
In 2024 the Bay Area Air Quality Management District and the California Air Resources Board settled a joint suit against Valero for a record-breaking $82 million over a 2019 inspection that revealed unreported emissions.
On the West Coast per barrel of throughput, Valero reported $14.43/bbl for Q1 2025 versus last year's $12.62/bbl.
The U.S. Gulf Coast refining margin per barrel was reported as $9.56/bbl, versus 2024's $14.11/bbl. The Midwest margin per barrel was $7.87/bbl for Q1, compared to $13.20/bbl the same time last year.
Valero's decision to close the Benicia plant comes a little more than six months after Phillips 66 said it would shutter its 147,000 b/d Los Angeles facility during the Q4 2025.
The Phillips 66 LA refinery represents 8.57% crude oil capacity in the state, according to CEC data.
While Phillips 66 said its decision was not related to statewide policy that tightly regulate the oil and gas industry, Valero's leadership expressed strong opinions on the matter.
"For Valero, California is the most expensive operating environment in the country and a very hostile regulatory environment for refining," Scott Folwarkow, the company's vice president of government affairs, told the California Energy Commission in 2022.
"California policymakers have knowingly adopted policies with the expressed intent of eliminating the refinery sector," Folwarkow added.
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--Reporting by Bayan Raji, braji@opisnet.com; Editing by Donna Harris, dharris@opisnet.com
(END) Dow Jones Newswires
April 24, 2025 08:18 ET (12:18 GMT)
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