Americas News
Valero Weighs Closure of Benicia Refinery by April 2026
US refinery Valero has submitted a notice to the California Energy Commission for its intent to idle, restructure, or cease operations at its 170,000 b/d capacity Benicia Refinery located in California by the end of April 2026.
The refinery processes sour crude oil into gasoline, diesel, jet fuel and asphalt for road construction.
This decision is likely influenced by high operating costs and stringent environmental regulations in California, which have made it more challenging for the refinery to remain economically viable.
Additionally, Valero has recorded a $1.1 billion pre-tax impairment charge related to its California refineries, further indicating the growing economic pressures faced by these operations.
Valero operates 15 refineries across the US, Canada, and the UK, with a significant concentration in the US Gulf Coast.
The company is also an active bunker supplier, particularly in the Houston Ship Channel and other Gulf Coast locations.
It remains unclear whether the potential shutdown of the Benicia facility will affect marine fuel availability on the US West Coast.
