Valero to Close Northern California Refinery As State Imports 40% Gas from Bahamas
Valero will shut its Northern California refinery this spring, intensifying the state's fuel supply gap and forcing greater reliance on imports. In November California sourced over 40% of its gasoline from the Bahamas, sending barrels thousands of miles at added shipping cost.
1. Refinery Closure Plans
Valero Energy has scheduled the shutdown of its Northern California refinery this spring, removing a critical local gasoline production source. This closure follows the October 2025 shutdown of a Los Angeles facility and reduces the state’s in-region refining capacity further.
2. Increased Dependence on Bahamian Imports
California imported more gasoline in November than ever before, with over 40% coming from the Bahamas. The lack of interstate pipelines and reduced local refining capacity have driven this record volume of long-haul shipments.
3. Costly Shipping Routes and Margins
Under current maritime rules, US-flagged tankers carry higher rates, prompting refiners to route barrels through the Bahamas on foreign vessels. This detour preserves Gulf Coast refiners’ margins but adds fuel transport costs that could pressure regional gasoline prices.