VALERO REFINING COMPANY said that it would continue operating its refinery in Benicia as an import destination for refined gasoline products after idling the refinery by April.
The company previously planned to cease all operations at the site in early 2026 but will continue to refine its current inventory of oil at the location as it phases out active operations through March. After that, it will serve as a hub for refined products entering Northern California from other markets, according to the company and Gov. Gavin Newsom’s office.
The refinery’s more than 400 workers will be given the chance to transfer to other Valero locations or will receive job placement services for outside employment opportunities, according to the company.
“Valero will proceed with idling through a phased approach, starting with its processing units in February, due to required mandatory state inspections that cannot be deferred,” Valero said in a statement on Tuesday.
“We continue to carefully evaluate all strategic options for the Benicia assets and remain in close communication with state officials. Valero remains committed to fulfilling its contractual supply obligations in the California market and anticipates importing additional gasoline volumes to the Bay Area in the near term,” the statement said.
Newsom echoed the possibility that something more could be done regarding the refinery and that talks were continuing about operations in the future.
“We’re in ongoing discussions with Valero to evaluate options for continued operations at the Benicia refinery and I appreciate the company planning responsibly, including planning for imports of refined products to supply the market in the meantime,” he said in a statement.
City plans unchanged
But while the governor’s office and the California Energy Commission celebrated the news as a major development for the refinery’s future, the city of Benicia said in a statement Wednesday that the move did not change anything about its own planning for the refinery to close.
“Our focus remains on Benicia’s future,” the city’s statement said. “The City is actively preparing for the refinery’s closure later this year by planning for future uses of the site, accelerating efforts to diversify our local economy, and supporting workers through the transition.”
The refinery’s main gasoline products are two types of specialized gas made for the California market under the state’s pollution laws called California Reformulated Blendstock Gasoline for Oxygenate Blending (CARBOB), and Conventional Blendstock for Oxygenate Blending (CBOB) gasolines.
Both are ultra-refined petroleum products mixed with what are known as oxygenates, which come from natural sources like feedstock and includes ethanol, according to the company and the California Department of Energy.
The refinery also makes a mixture of products, including jet fuel — which it supplies to nearby Travis Air Force Base — diesel, and asphalt. It also functions as a cogeneration power plant that produces 50 megawatts of electricity per day, according to Valero.
It produced up to 170,000 barrels per day at its peak capacity.