By Nicole Jao, David French and Sharik Han
New York (Reuters) -California’s government officials are trying to find a buyer for Valerie Energy Benisia’s refinery near San Francisco, said three sources familiar with the question are unusual efforts when the watch canceled the planned closure of the facility in April.
The country’s government experience to mediate in the sale of private infrastructure reflects its increasing concerns about the protection of fuel supply in the most populated country in the United States and maintaining a price lid, where nearly 28 million drivers in California are already paying among the highest prices of gasoline in the country.
California’s efforts to save the refinery from closure also notes the focus of government policy in recent years to the champion of green initiatives and limits the use of fossil fuels, which has led to frequently tense relations between the state and the oil companies, including the second largest US refinery.
The State Agency for Planning of Energy and Policy, the California Energy Committee (CEC), actively sought the buyers of the plant, said three sources to Reuters, talking on the condition of anonymity to discuss private discussions.
The CEC declined to say whether he was directly engaged with buyers for the facility, but admitted that it was working to ensure that the facility remains open.
“The CEC is committed to market participants to explore the roads for prolonged work of state refineries,” an email statement said.
Valerro, who reports profits on Thursday, did not answer comment requests.
Earlier this year, Valerro announced his intention to terminate operations by April 2026 in the refinery in the San Francisco area in San Francisco amid the declining fuel supplies in California and high gasoline prices.
San Antonio -based, Texas -based Rafinery, also examines whether to continue operations in the rest of its refinery in California, including the 91 300 BPD Wilmington Plant near Los Angeles.
This happens after Phillips 66 said last October that it would close its refinery in the Los Angeles area due to “market dynamics” and start in October, which will reduce operations at the 139,000 BPD plant.
Both refineries, combined, produce approximately 17% of the delivery of gasoline to the state. Their closure, among other closure and refineries, transformed to produce renewable fuels, with the Phillips 66 Rodeo facility last year leaving California even more dependent on the more expensive fuel imports, which will further increase prices.