Phillips 66 plans to close its Los Angeles refinery, cutting 140,000 barrels per day from California’s refining capacity. The refinery consists of two large complexes, which will both shut down next year, reducing the state’s output by about 8%.
Phillips 66 will compensate for the lost production through its other refineries and external sources, including the Rodeo Renewable Energy facility. The closure impacts 600 employees and 300 contractors.
The shutdown is expected to increase California’s reliance on fuel imports from East Asia. With domestic tanker capacity limited, long-haul routes from Asia are anticipated to grow.
Energy experts believe that by 2025, product tanker demand in the Pacific Basin will rise, with key suppliers including South Korea, Singapore, India, and possibly China.