US refiner Valero is planning to shut or re-purpose its 145,000 b/d refinery in Benicia, California.
The company submitted a notice to the California Energy Commission today of its intent "to idle, restructure, or cease refining operations" at the refinery by the end of April 2026.
Valero also said it continues to evaluate strategic alternatives for its remaining operations in the state, namely its 85,000 b/d Wilmington refinery.
Valero said previously west coast refinery closures were likely, citing the high cost of doing business in the state given its environmental and financial regulations.
The company recorded a pre-tax impairment charge of $1.1bn for the Benicia and Wilmington refineries in the first quarter as it evaluates strategic alternatives. The impairment will be treated as a special item and excluded from first quarter earnings, Valero said.
The announcement comes after Phillips 66 last year said it would shut its 139,000 b/d Los Angeles refinery, saying that the long-term sustainability of the refinery was uncertain and affected by market dynamics. The Phillips 66 refinery will be shut by October.
California refiners in recent years have faced what the industry views as a restrictive environment for processing crude.
