Valero to Idle Benicia Refinery by End of April 2026


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- Valero Energy Corporation said in a statement Tuesday 
(1/6) that it has notified the California Energy Commission of its current 
intent to idle its 170,000 bpd Benicia Refinery by the end of April 2026, as 
the company continues to evaluate strategic alternatives for its California 
assets.

   Valero said its subsidiary, Valero Refining Company California, submitted 
the notice as part of a broader review of operations in the state. The 
statement noted that the company is continuing with plans to safely proceed 
with idling refining operations at the Benicia refinery through a phased 
approach, beginning with processing units in February due to mandatory state 
inspections that cannot be deferred. Valero said the refinery will continue 
producing gasoline as it works down inventories, though most refining process 
units are expected to be properly idled by April.

   The company did not provide additional details on potential workforce 
impacts but confirmed it expects to submit a Worker Adjustment and Retraining 
Notification (WARN) notice as required by law. Valero said it is offering 
Benicia employees the opportunity to transfer to another Valero location or 
receive outplacement service assistance during the transition.

   "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," Chairman, CEO and President Lane Riggs said.

   California Governor Gavin Newsom said the updated plan marks a constructive 
shift from an earlier announcement that included the possibility of a full 
closure and exit from the Northern California market in early 2026. Under the 
revised approach, the Benicia refinery will continue producing gasoline through 
April 2026. After that, Valero plans to supply Northern California through a 
combination of existing inventories and imports.

   Newsom said the state remains in discussions with Valero to evaluate options 
for continued operations at the Benicia refinery, adding that planning for 
imports would help support supply stability and limit price disruptions as 
talks continue.

   Valero said it will continue to assess strategic alternatives for its 
remaining California operations.

    




(c) Copyright 2026 DTN, LLC. All rights reserved.