Valero’s announced it intends to idle or shut down its Benecia Refinery in California in a year.
The company said its subsidiary, Valero Refining Company-California submitted notice to the California Energy Commission of its current intent to idle, restructure, or cease refining operations at Valero’s Benicia Refinery by the end of April 2026.
One broadcast report suggested the reason was environmental restrictions from California.
Valero continues to evaluate strategic alternatives for its remaining operations in California. “We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period,” said Lane Riggs, Chairman, CEO and President of Valero.
In connection with the evaluation of strategic alternatives for Valero’s operations in California, a combined pre-tax impairment charge of $1.1 billion was recorded for the Benicia and Wilmington refineries, and is expected to be treated as a special item and excluded from first quarter 2025 adjusted earnings. Also included in this amount is the recognition of expected asset retirement obligations of $337 million as of March 31, 2025.
The refinery has about 400 employees. Located near the Carquinez Strait and Interstate 680, it produces jet fuel, gasoline and asphalt. The company reported the plant has a capacity of 170,000 barrels a day.
Valero has owned the plant since 2000 after it was originally built for Humble Oil which later became Exxon. Work started in 1968 and the plant was completed in 1969.
Source: Business Wire
