Los Angeles-Area Wildfires Pose No Imminent Threat to Refiner Operations -- OPIS

 Wildfires burning through Los Angeles County pose no imminent threat to regional refiner operations, according to area refining companies on Wednesday, but potential ancillary impacts from smoke and power outages are less clear.

The Los Angeles region houses some of the most vital refinery infrastructure in the Western U.S.

Southern California refineries produced roughly 71% of the total CARB reformulated gasoline in the state as of Dec. 27, up from 66% reported in the week prior, according to California Energy Commission data.

Geographically, the region's refineries sit west of Los Angeles, close to the ocean, meaning the facilities are at low risk of being impacted by wildfire, according to a 2018 report by the CEC.

Chevron operates a 290,000 b/d facility in El Segundo and a spokesperson said the company continues to supply customers.

"Chevron's El Segundo refinery is closely monitoring the wildfires in the region. The fires have not impacted the refinery's ability to supply petroleum products to its customers in the region," said a Chevron representative.

Phillips 66's operations in the Los Angeles area include a 147,000 b/d facility, where it intends to wind down refining operations by the end of this year.

"Phillips 66 is closely monitoring the Palisades Fire in Southern California," a spokesperson told OPIS via email. "There are currently no major disruptions to refinery operations, and Phillips 66 is actively taking steps to minimize any potential disruptions."

Marathon runs a 382,000 b/d compound in Los Angeles. A company spokesperson did not respond to an inquiry for comment.

A Valero spokesperson did not respond to an inquiry about the company's 93,500 b/d facility. Unplanned "emergency" flaring took place at the facility Tuesday, according to a regulatory filing with the South Coast Air Quality Management District.

PBF Energy's 166,200 b/d Torrance refinery, about 30 miles south of the Palisades fire, experienced "emergency flaring" Monday, according to the Flare Event Notification site, but there have been no reports of operational upsets at the plant since. A company spokesperson declined to comment on operations.

Kinder Morgan's SFPP West Line was shut down due to power outages stemming from regional wildfires, a Kinder Morgan spokesperson informed OPIS Wednesday.

"The fires are not directly impacting our operations," a company spokesperson said. "The SFPP West Line was shut down due to power outages in the area. We expect the line to resume service once the power has been restored."

Southern California Edison estimates more than 65,000 customers are experiencing power outages. An estimated 145,200 customers are without power due to public safety shutoffs, according to Edison.

Among the most serious blazes is the Palisades fire, which has burned nearly 3,000 acres in hours, forcing the evacuation of more than 30,000 residents and threatening nearby infrastructure.

The Palisades fire in the Pacific Palisades area began late Tuesday afternoon and spread rapidly due to steep terrain and 50-mph winds. The Eaton fire near Pasadena and the Hurst fire in Sylmar have triggered mandatory evacuations in surrounding neighborhoods. Over 80,000 residents have been evacuated, with over 5,000 acres burned.

Gov. Gavin Newsom has declared a state of emergency for Los Angeles County to mobilize state and federal resources in response to the fires and support affected communities.

Newsom said California has secured a Fire Management Assistance Grant from the Federal Emergency Management Agency. This grant will assist local, state and tribal agencies involved in fire response, enabling them to apply for reimbursement of 75% of eligible fire suppression costs.

"This is a highly dangerous windstorm that's creating extreme fire risk - and we're not out of the woods. We're already seeing the destructive impacts with this fire in Pacific Palisades that grew rapidly in a matter of minutes, " said Newsom.

The National Weather Service issued a High-Wind warning and a Red Flag warning for Los Angeles County on Tuesday, warning that the conditions are favorable for "very rapid fire spread" and "extreme fire behavior" if fire ignition occurs.

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