Valero plans to restructure or cease Benicia Refinery ops
Valero Energy Corporation has formally notified the California Energy Commission of its intent to idle, restructure, or cease refining operations at its Benicia Refinery by the end of April 2026.
The notification, submitted by its subsidiary Valero Refining Company-California, marks a significant development in the company’s ongoing evaluation of strategic alternatives for its operations in California.
The Valero Benicia Refinery, situated in Benicia, California, northeast of San Francisco, is a significant component of Valero Energy Corporation’s operations. Established in 1969 and acquired by Valero in 2000, the refinery boasts a processing capacity of approximately 170,000 barrels of crude oil per day. It produces a range of petroleum products, including California Air Resources Board (CARB) gasoline, diesel, jet fuel, and asphalt. Notably, the refinery supplies about 10% of California’s CARB gasoline and 25% of the San Francisco Bay Area’s CARB gasoline requirements. Additionally, it accounts for 45% of the asphalt supply in Northern California.
The facility employs more than 400 individuals and features a cogeneration system capable of producing 50 megawatts of power, enhancing energy efficiency and reducing dependence on the local electric grid.
“We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period,” said Lane Riggs, Valero’s chairman, CEO, and president.
As part of this strategic review, Valero has recorded a pre-tax impairment charge of USD 1.1 billion for its Benicia and Wilmington refineries. This figure includes USD 337 million in estimated asset retirement obligations as of 31 March 2025. The impairment charge will be treated as a special item and excluded from the company’s first quarter 2025 adjusted earnings.
Valero, a multinational energy firm based in San Antonio, Texas, U.S.A.,, operates 15 petroleum refineries across the United States, Canada, and the United Kingdom, with a total throughput capacity of approximately 3.2 million barrels per day. It is also a joint venture partner in Diamond Green Diesel Holdings LLC, a major producer of low-carbon fuels such as renewable diesel and sustainable aviation fuel (SAF).
The company additionally owns 12 ethanol plants in the U.S. Mid-Continent region, capable of producing 1.7 billion gallons per year, and manages its business through three segments: Refining, Renewable Diesel, and Ethanol.
