Phillips 66, a major energy company, announced on October 17 that it would be ceasing operations at its Los Angeles area refinery in the fourth quarter of 2025. The decision comes amid increasing challenges facing the refinery, including market dynamics and long-term sustainability concerns.

The closure is expected to impact approximately 600 employees and 300 contractors currently working at the refinery. Phillips 66 has stated that it will work to provide support and assistance to those affected by the transition. “Company will work closely with the State of California to supply fuel markets and meet ongoing consumer demand,” the company’s presser stated.

“We understand the impact this decision will have on our employees, contractors, and the broader community,” said Mark Lashier, chairman and CEO of Phillips 66. “We will work to help and support them through this transition.”  

In light of the refinery closure, Phillips 66 is exploring potential future uses for the 650-acre sites in Wilmington and Carson, California. The company has engaged Catellus Development Corporation and Deca Companies, two leading real estate development firms, to evaluate potential development options.

“These sites offer an opportunity to create a transformational project that can support the environment, generate economic development, create jobs, and improve the region’s critical infrastructure,” Lashier said.

The development firms are known for their experience in redeveloping complex properties and will work together with Phillips 66. They will provide advice on how to turn the refinery sites into new commercial areas. These new areas will in turn benefit the local economy and meet the goals of different stakeholders of this project.

To address the potential impact of the refinery closure on fuel supply in California, Phillips 66 has committed to working with the state to maintain current levels and potentially increase supplies. The company will supply gasoline from both domestic and international sources, as well as renewable diesel and sustainable aviation fuels from its Rodeo Renewable Energy Complex.

The California Energy Commission has previously indicated that expanding supply capabilities will be critical to meeting the state’s fuel needs. Phillips 66 supports these efforts and will work closely with California officials to ensure a stable fuel supply.

Phillips 66 (NYSE: PSX) is a major integrated downstream energy company that produces, transports, and markets products essential to the global economy. Its diverse operations span Midstream, Chemicals, Refining, Marketing & Specialties, and Renewable Fuels. Based in Houston, the company’s global workforce is dedicated to delivering energy safely and reliably while advancing efforts toward a lower-carbon future.