US independent refiner Phillips 66 is planning to produce CARB gasoline at its 105,000 b/d refinery in Ferndale, Washington, to help supply the California market, chief executive Mark Lashier said today.
The Ferndale refinery is "shifting over to be able to produce CARB gasoline" to supply northern and southern California, Lashier said Tuesday at the JP Morgan 2025 Energy, Power, Renewables & Mining Conference.
CARB gasoline is a special fuel blend mandated by California that aims to reduce pollution and improve air quality. It burns cleaner but is more expensive to produce because it requires more processing steps and costly blending components, according to the US Energy Information Administration.
The change at the Ferndale facility comes as Phillips 66 plans to shut its 139,000 b/d Los Angeles refinery in the fourth quarter.
The company is committed to resupplying what the refinery shutdown removes from the California market, Lashier said. The refiner is working with California Governor Gavin Newsom and state regulators to help identify the best ways to supply fuel markets when the Los Angeles refinery closes, including obtaining permits to import from offshore markets, he said.
Phillips 66 has started a process to redevelop the land at the Los Angeles refinery for "a higher-value use", Lashier added.
Another US independent refiner, HF Sinclair, said last month it is moving forward with a plan that could allow it to make more CARB gasoline at its 145,000 b/d Puget Sound refinery in Anacortes, Washington, to help supply California.
California supplies already tightened this year after PBF Energy's 156,400 b/d Martinez, California, refinery was shut following a 1 February fire. 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 frequently volatile products market.
