By Robb M. Stewart

Valero Energy could idle or shutter its Benicia refinery within a year as it continues to look at options for California operations.

The energy company said Wednesday it notified the California Energy Commission that it intends to idle, restructure or cease refining operations at the refinery northeast of San Francisco by the end of April 2026.

The company said it 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," Chairman, Chief Executive and President Lane Riggs said.

In connection with the review of the Californian businesses, Valero booked a pretax impairment charge of $1.1 billion for the Benicia and Wilmington refineries. The charge also includes the recognition of expected asset retirement obligations of $337 million as of March 31, the company said.

According to the company's website, Benicia has a throughput capacity of 170,000 barrels a day and employs more than 400 people. Feedstock received via a marine dock and pipelines is processed into reformulated gasoline blendstock for oxygenate blending and conventional blendstock for gasolines, diesel, jet fuel and asphalt.

Houston-based oil refiner Phillips 66 in October announced it would close a refinery near Los Angeles in the fourth quarter of 2025, saying its long-term sustainability was uncertain and affected by market dynamics.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

April 16, 2025 09:07 ET (13:07 GMT)

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