No Buyer In Sight -- August 29, 2025

 ChatGPT prompt:

Oil refineries. Is there any talk about someone buying the Phillips 66 refinery the company is planning to shut down in California?

 

ChatGPT reply:

Here’s what the latest reporting reveals about the planned shutdown of the Phillips 66 refinery in California—and whether there’s any buyer lined up:

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Current Status: No Buyer in Sight

Planned Closure Details

Phillips 66 is moving ahead with shutting down its Los Angeles–area refinery—covering its Wilmington and Carson operations—starting in early September 2025, as part of a complete wind-down by October 2025  . This facility, with a capacity of around 139,000 barrels per day, represents roughly 8% of California’s refining capacity  .

No Acquisition Announced

As of now, there are no credible reports of any entity negotiating to buy the refinery. Instead, Phillips 66 is working with land development firms to explore repurposing the 650-acre site near the Port of Los Angeles  .

A real estate broker noted that the plant “has been for sale for years” but has “not found any buyers”, indicating that disposal through redevelopment, not a sale to another refiner, is the current direction  .

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Broader Implications & Context

• The shutdown is attributed to market dynamics, high operational costs, and regulatory pressures—not due to recent state environmental legislation  .

• The closure raises concerns about fuel supply disruptions and potentially rising gasoline prices, as it cuts a significant portion of local refining capacity in a state that already contends with the nation’s highest gas prices  .

• In contrast, Valero’s Benicia refinery (another major California facility) is also expected to close by April 2026, and unlike Phillips 66, there are discussions about trying to find a buyer or alternative solutions for that facility

TL;DR

There is no indication that anyone is buying the Phillips 66 Los Angeles refinery. The company appears to be pursuing redevelopment of the site rather than a sale. Meanwhile, fuel supply concerns remain as California braces for reduced refining capacity.