Tristan R. Perry

Notable as California to be dependent on fuel from Asia now> 🚢LA Refinery Closure Adds Long-Haul Demand for Product Tankers in Pacific (The Maritime Executive) Phillips 66 has announced plans to close its refinery in Los Angeles, a sprawling 100-year-old facility adjacent to the San Pedro port complex. The decision takes about 140,000 barrels per day of refining capacity off the California market, and it will prompt shifts in tanker routes to replace the lost volume. According to energy shipping specialists Poten & Partners, the refinery shutdown will increase the amount of fuel that California imports from East Asian refiners. Domestic tanker capacity is nearly at full utilization, and there is no orderbook for additional U.S.-built tankers at present, so Poten believes that additional shipments from the Gulf Coast to California are unlikely. Instead, the consultancy suggests, the replacement fuel will likely come from the place with the greatest capacity to produce it at a favorable cost - East Asia.