Valero powering down operations at Benicia refinery

Valero powering down operations at Benicia refinery

Energy company Valero announced it will begin powering down operations at its refinery in Benicia, with plans to stop producing fuel in Northern California entirely by April.

BENICIA, Calif. - Energy company Valero announced it will begin powering down operations at its refinery in Benicia, with plans to stop producing fuel in Northern California entirely by April.

The company said it will begin slowing or shutting down processing units starting in February. 

Valero said it will continue producing gasoline as it powers down, but by April the refinery will be idled. The company cited high costs and strict state regulations for the decision.

Valero said it plans to continue supplying the region with fuel using existing inventory and by importing additional gasoline.

Gov. Gavin Newsom’s office expressed support for the company’s approach, saying the state is in ongoing discussions with Valero about options for continued operations at the Benicia refinery.

"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," according to a statement from the governor's office. 

The refinery is Benicia’s largest employer, with about 400 workers. 

Valero said it plans to a WARN notice, which could result in layoffs of more than 50 employees, but added that workers will be offered opportunities to transfer to other company locations.