In an unusual move, the California Energy Commission (CEC) is trying to find a buyer for Valero Energy’s Benicia refinery ahead of its planned closure in April 2026, Reuters reported. The state government is trying to broker the sale of privately-owned infrastructure amid concerns that refinery closures could lead to fuel shortages and price spikes in California.
The CEC “is engaging with market players to explore pathways for the continued operation of in-state refineries,” the agency said in an emailed statement to Reuters.
In a statement to Politico, a CEC spokesperson said the agency “has been and is actively supporting conversations with a variety of market players to discuss pathways to address the impacts of the closure intent announcements of the Phillips 66 refinery in Wilmington and Valero refinery in Benicia.”
In October 2024, Phillips 66 announced that it will close its 139,000-barrel-per-day Wilmington Refinery in Los Angeles in the fourth quarter of 2025. In April 2025, Valero Energy announced that it would cease operations at its 170,000-barrel-per-day Benicia refinery in northern California by the end of April 2026. The two refineries represent 17% of the state’s oil refinery capacity, according to the U.S. Energy Information Administration.