Phillips 66's 139,000 b/d Los Angeles refinery will start "some winding down" of operations toward the end of the third quarter as part of a planned closure, the company said today.
"On the back side of the third quarter, you'll start seeing some winding down of the operation that will have some impact to utilization," Phillips 66 executive vice president of refining Richard Harbison said Friday on the company's second-quarter earnings call.
Phillips 66 also said that fuel imports into California will help reduce volatility after the Los Angeles refinery shuts down by the end of the year.
The refiner is working with California governor Gavin Newsom and state regulators to help identify the best ways to supply fuel markets after the refinery closes, including obtaining permits to import from offshore markets, chief executive Mark Lashier said last month.
Phillips 66 is planning to produce CARB gasoline at its 105,000 b/d refinery in Ferndale, Washington, to help supply the California market.
CARB gasoline is a special fuel blend mandated by California that aims to reduce pollution and improve air quality.
Supplies in the state have already tightened this year following a 1 February fire that shut PBF Energy's 156,400 b/d Martinez, California, refinery. The refinery partially restarted in April and is running at limited rates.
In addition, independent refiner Valero on 16 April said it is planning to shut or re-purpose its 145,000 b/d refinery in Benicia, California, by April 2026 and is also evaluating strategic alternatives for its 85,000 b/d Wilmington, California, facility.
The planned California closures have triggered major concerns about the state's tightly supplied and often volatile products market.
California officials are working hard to avoid the shutdown of the Benicia refinery, but no solutions have materialized, Valero said Thursday.
