American refinery reveals plans to shut down operations

• A California refinery has perfected plans to unopen operations aft Valero Energy Corp declared a $1.1 cardinal impairment
• The radical disclosed that it would either permanently unopen down oregon restructure the Los Angeles-based facility
• The institution CEO, Lane Riggs, explained that the determination volition impact its employees, partners, and community.

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

Valero Energy has disclosed it was taking a $1.1 cardinal pre-tax impairment regarding its California refineries, telling authorities regulators that it would permanently adjacent oregon restructure its San Francisco-area refinery by the extremity of April 2026.

The improvement comes arsenic refiners look rising regulatory and outgo pressures successful California, the largest petrol marketplace successful the US.

Another refinery moves to unopen down operations arsenic Dangote sells substance to the US. Credit: Bloomberg/Contributor
Source: Getty Images

Valero refinery’s closure to interaction employees

The state’s emissions targets and projected refinery transparency rules person impacted semipermanent concern plans.

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The US Energy Information Administration (USEIA) says the refinery processes an mean of 145,000 barrels per time of crude lipid into fuels.

Reuters reports that Lane Riggs, Valero’s main executive, said that the determination whitethorn interaction the refinery’s employees, its business, partners and assemblage and volition proceed to enactment with them passim the period.

The installation disclosed connected Wednesday, April 16, 2025, that it was considering strategical options for its 91,300 bpd Los Angeles refinery.

According to reports, the fig of refineries successful California processing crude has been dropping, with firms citing heightened regulation, similar plans to prohibition the merchantability of petrol-powered vehicles by 2035.

More refineries unopen down

Six facilities person unopen since 2008, 2 of which person converted to producing renewable diesel.

Another US facility, Phillips 66, said it would adjacent its 139,000 bpd Los Angeles works wrong a year.

The determination came days aft a authorities law, signed by Governor Gavin Newsom, required refineries to stockpile substance to bounds terms increases.

Petrol prices successful the US authorities are among the priciest successful the state owed to the state’s dependence connected West Coast refineries oregon imports from Asia oregon the Middle East.

There are pipelines connecting refineries on the Gulf Coast and successful the Midwest.

Dangote Refinery delivers aviation substance to the US

The improvement came arsenic the Dangote refinery exported 1.7 cardinal barrels of pitchy substance to the United States. 

According to ship-tracking work Kpler, this shipment arrived astatine the United States ports connected Monday, March 24, 2025. 

Further information from Kpler indicates that different vessel, the Hafnia Andromeda, is scheduled to dock astatine the Everglades terminal by March 29, carrying astir 348,000 barrels of pitchy fuel. 

Dangote Refinery’s exports impact the US market

These exports item the refinery's expanding footprint successful North America and Europe.

Reuters reports that Dangote lipid refinery has besides issued a tender connected Tuesday, March 25, to merchantability 128,000 metric tons of residual substance lipid successful April. 

Aliko Dangote's refinery is affecting planetary marketplace stock arsenic the US installation moves to unopen down. Credit: Bloomberg/Contributor
Source: Getty Images

The study added that the Dangote refinery volition adjacent the tender connected Wednesday astatine 1200 GMT, arsenic it seeks buyers for 88,000 tons of low-sulphur straight-run substance lipid and 40,000 tons of slurry lipid for loading connected April 10-12. 

S&P Global says Dangote petrol is excessively pricy

Legit.ng earlier reported that the terms of petroleum products from the Dangote Refinery has been seen arsenic 1 of the reasons petroleum merchandise imports persist successful Nigeria.

S&P Global, an American fiscal analytics company, disclosed successful its caller study that Dangote’s price reduction was not important capable comparative to the planetary clang successful crude prices.

The mega refinery has reduced petrol and different petroleum merchandise prices respective times, creating a terms warfare with manufacture leaders.

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Source: Legit.ng