News Brief

November 19, 2025

California refinery closures fuel pipeline race to the West Coast

Energy companies are seizing a moment of opportunity to propose three competing plans to pipe more fuel to California, according to Reuters.

Three groups have floated ideas to fill a 280,000-barrel-per-day supply gap caused by the closure of two California refineries, the outlet reported Wednesday. Phillips 66’s Los Angeles refinery began ramping down operations in September, and Valero Energy's Benicia refinery plans to close in April.

Refiner H.F. Sinclair, pipeline company ONEOK, and a partnership between Phillips 66 and pipeline company Kinder Morgan are all pitching pipeline proposals, according to Reuters.

California leaders, including Democratic and possible presidential hopeful Gov. Gavin Newsom, are grappling with public pressure over rising fuel costs due to refinery closures and limited connection to other major refining areas, such as the Gulf Coast. Potential profit and a shifting political climate in the state are providing an opportunity for pipeline companies, analysts told Reuters.

"Given the backlash to refinery closures, it's hard to imagine much resistance to new projects," East Daley analyst Alec Gravelle told the outlet.

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