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

Phillips 66 announced Wednesday it will close its 650-acre oil refinery complex near the Port of Los Angeles by the fourth quarter of 2025, days after Gov. Gavin Newsom (D) signed a new law regulating gas storage and refineries.

California Gov. Gavin Newsom's bill would require oil refineries in the state to maintain a minimum amount of oil supply.

According to the company, about 600 employees and 300 contractors operate the Los Angeles-area refinery. The refinery includes a crude-oil processing facility in Carson and a separate facility in Wilmington where the processed oil is finalized into “finished products.” The two facilities are linked by a roughly five-mile pipeline.

Oil company Phillips 66 has announced that it plans to shut down a Los Angeles-area refinery that accounts for about 8% of California's refining capacity The company indicates it will remain operating in California.

Phillips 66 dropped a bombshell this week, announcing plans to close its Los Angeles refinery—California’s seventh-largest—which currently provides about 8% of the state’s gasoline. The decision, made just two days after Governor Gavin Newsom signed a groundbreaking law designed to regulate gasoline prices,