Phillips 66 Announces Los Angeles Refinery Closure to Begin in September

Phillips 66, an oil group with 4 divisions, will begin the closure of its Los Angeles refinery in September. The refinery is part of the group's refining division, which operates 12 refineries in the US and Europe. The closure is expected to impact the group's refining operations, which account for 24.5% of net sales. The group's trading and distribution of petroleum products division accounts for 64.7% of net sales.

Phillips 66, a major oil group with a diverse portfolio of operations, has announced plans to begin the closure of its Los Angeles refinery in September. This refinery, located in the Los Angeles area, has a capacity of 139,000 barrels per day (bbl/day) and employs approximately 600 workers and 300 contractors [1].

The refinery will start idling its units by the end of 2025, as part of a complex, multi-phased approach to permanent closure. The majority of the workforce, around 600 workers, and 300 contractors are expected to be laid off by December, with a few workers being transferred to the company's Los Angeles marine oil terminal [1].

The closure of the Los Angeles refinery is part of a broader trend in the industry, with Valero Energy also planning to close its Benicia refinery, which has a capacity of 145,000 bbl/day. Together, these two refineries produce approximately 20% of California's gasoline supply [1].

Phillips 66 operates 12 refineries in total, with 10 located in the United States and 2 in Europe. The refining division accounts for 24.5% of the company's net sales, while the trading and distribution of petroleum products division accounts for 64.7% [2].

The closure of the Los Angeles refinery is expected to have an impact on the company's refining operations, but the group's diversified portfolio of operations, including trading and distribution, processing, transportation, and storage of petroleum products, natural gas, and other petrochemical products, is likely to mitigate the effects [2].

References:
[1] https://seekingalpha.com/news/4490134-phillips-66-to-start-winding-down-los-angeles-refinery-next-week-reuters
[2] https://www.marketscreener.com/news/phillips-66-to-begin-los-angeles-refinery-closure-in-september-ce7c50dcd88bf027