Valero to Cease Operations at 170,000 bpd Benicia Refinery by April 2026 Amid $1.1B Impairment Charge

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Updated Apr 16, 2025, 06:48 PM

Valero Energy Corp. has notified the California Energy Commission of its intention to idle, restructure, or cease refining operations at its Benicia refinery by the end of April 2026. The company is evaluating strategic alternatives for its remaining operations in California, including the Wilmington refinery. The decision comes as Valero recorded a $1.1 billion pre-tax impairment charge for the Benicia and Wilmington refineries, which will be excluded from first quarter 2025 adjusted earnings. This charge includes $337 million in expected asset retirement obligations as of March 31, 2025. The potential closure or restructuring of the Benicia refinery, which has a capacity of 170,000 barrels per day and employs over 400 people, is attributed to the challenging regulatory environment in California. Lane Riggs, Chairman, CEO, and President of Valero, stated, '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.' This move follows the announcement by Phillips 66 to shut down its 139,000 barrels per day Los Angeles refinery later this year, reducing the number of refineries in California to seven.

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