Valero Still Plans to Shut Refinery After Talks with California Officials — OPIS

Valero Energy is proceeding with its plan to close its 145,000 b/d Benicia refinery in Northern California by next spring following talks with state officials about options to keep it running, the company's general counsel said on Thursday.

"We have been in discussions with California, but nothing has materialized out of that. And so as a result nothing has changed," Rich Walsh told analysts during a call to discuss the company's third-quarter financial results.

"Our plans are still moving forward as we have shared and as we have informed the state. So, I don't see anything changing on that," he said.

Valero said in April it would cease refining operations at the Benicia refinery by the end of April 2026.

Over the last several months, the California Energy Commission and state officials were reportedly working to find a buyer for the refinery and exploring other options to keep the facility in operation.

Phillips 66 said early this month its 156,000 b/d Los Angeles refinery received its final waterborne crude shipment and expected to halt crude processing in mid-October. The Valero and Phillips plants account for about 17% of California's crude oil refining capacity.

Valero Chief Executive Lane Riggs said on the call that the company will continue to supply fuel for its California wholesale operations after the refinery closes. He also said Valero plans to import waterborne barrels into the state from "anywhere in the world.

"We will figure out how to supply it," Riggs said.

He also said an FCC improvement project at its 235,000 b/d St. Charles, La., refinery will begin operating in the second half of next year. The $230 million project will allow the refinery to produce more high-value products, including high-octane alkylate.

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-- Reporting by Frank Tang, ftang@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com

(END) Dow Jones Newswires

October 23, 2025 17:38 ET (21:38 GMT)