Phillips 66 announced Wednesday that it will close its historic Wilmington-area oil refinery complex but will work with the state to continue providing fuel to consumers.

The refinery near the Port of Los Angeles will cease operations in the fourth quarter of 2025. The company says it will replace its production with sources “inside and outside its refining network,” as well as renewable diesel and sustainable aviation fuels from a San Francisco Bay-area complex.

“Phillips 66 remains committed to California and will continue to take the necessary steps to meet our business and customer needs,” said Mark Lashier, chairman and chief executive officer of Phillips 66. “We understand that this decision impacts our employees and contractor has.” and the broader community. We will work to help and support them through this transition.”

According to the company, approximately 600 employees and 300 contractors currently operate the refinery.

The refinery complex consists of two pipeline-connected facilities located five miles apart in Wilmington and Carson, about 15 miles southeast of Los Angeles. According to the company's website, the Carson plant was built in 1923 and the Wilmington plant was built in 1919.

“There is no question that we will lose refineries over time because demand will decline with the transition to electric vehicles, but I did not expect any of them to retire so quickly,” said Severin Borenstein, faculty director of the Energy Institute at the Energy Institute the Haas School of Business at UC Berkeley.

California will now be more reliant on imports in the “medium term,” he said. “I think part of the response the state needs to consider is making sure we can import enough gasoline to meet our needs.”

Phillips 66 said it hired Catellus Development Corp. and Deca Cos. commissioned to evaluate future uses for the 650-acre site near the Port of Los Angeles.

“Historically, the South Bay industrial real estate market has been extremely tight, and this will allow for a lot of new inventory and capacity that should help the market by providing more warehouse and distribution space around the port,” said real estate agent Mike Condon Jr. of Cushman & Wakefield, who helped select a development partner for Phillips 66.

The announcement comes the same week that Gov. Gavin Newsom signed a new state law that could ease gasoline price spikes by giving regulators the power to require California oil refineries to hold more inventory.

The Houston-based company has also been the subject of controversy over its role in climate change, leading to calls for the removal of its iconic “76” sign at Dodger Stadium.

In the second quarter, Phillips 66 posted net income of $1.02 billion, down 40% from the same period last year. Shares have fallen 17% in the last six months. They closed Wednesday at $132.31, up nearly 1%.

Times staff writer Roger Vincent contributed to this report.