Valero says moving ahead to shut California refinery after talks with officials

[Oil Refinery at Dusk (Tilt-Shift)]
halbergman/E+ via Getty Images

Valero Energy (NYSE:VLO [https://seekingalpha.com/symbol/VLO]) said Thursday it moving forward with its plan to close [https://www.morningstar.com/news/dow-jones/2025102313219/valero-still-plans-to-shut-refinery-after-talks-with-california-officials-opis] its 145,000 bbl/day Benicia refinery in California by next spring following talks with state officials about options to keep it running, Dow Jones reported.

"We have been in discussions with California, but nothing has materialized out of that, and so as a result nothing has changed," General Counsel Rich Walsh said during the company's earnings conference call [https://seekingalpha.com/article/4832571-valero-energy-corporation-vlo-q3-2025-earnings-call-transcript].

Valero (NYSE:VLO [https://seekingalpha.com/symbol/VLO]) said in April [https://seekingalpha.com/news/4431686-valero-set-to-shut-benicia-refinery-in-california-books-1_1b-charge] it would cease refining operations at Benicia by the end of April 2026, while recording a combined $1.1B pre-tax impairment charge for the Benicia and Wilmington refineries in California.

The California Energy Commission and state officials reportedly have been working to find a buyer for the Benicia refinery and exploring other options to keep the plant in operation.

Valero (VLO [https://seekingalpha.com/symbol/VLO]) CEO Lane Riggs said on the earnings call that the company will continue to supply fuel for its California wholesale operations after the refinery closes, and that it plans to import waterborne barrels into the state from "anywhere in the world."

Riggs also said a $230 million improvement project at its 235,000 bbl/day St. Charles, Louisiana, refinery will begin operating in next year's H2; the project will allow the refinery to produce more high-value products, including high-octane alkylate.

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