INFOGRAPHIC: California's gasoline demand met with increased global supply as refineries close

As California's refining capacity dwindles, imports have picked up, particularly for gasoline and gasoline blending components to fill in the gap left by shuttered plants

California's gasoline imports, which ticked up in October as Phillips 66 ran the last barrel of crude at its Wilmington, California, refinery, have moved even higher in the first two weeks of November to fill the 70,000 b/d of gasoline supply gap left by the refinery's closure.

While much of the gasoline demand is met with increasing supply from Asia, Canada and from within the US itself, the Caribbean is also playing a role.

Import volumes tick higher

According to preliminary weekly data from the Energy Information Administration, imports into the US West Coast of gasoline and motor gasoline blendstocks averaged 253,000 b/d for the week ended Nov. 15, up from the 170,000 b/d for the four weeks ended Oct. 31.

Motor gasoline blending components (MGBC) – which include CBOB, RBOB, naphtha, alkylate, reformate, benzene, toluene, and xylene – comprised 147,000 b/d or over 85% of October's total motor gasoline imports.

While total volumes of MGBC rose week-on-week for the week ended Nov. 15, reaching 185,000 b/d, MGBC as a percentage of total imports fell to about 73% of total gasoline imports, as the gasoline specifications switch to a winter grade, with a higher Reid Vapor Pressure and lower demand for MGBC

Data from S&P Global Commodities at Sea shows October imports from the Bahamas averaged 65,400 b/d, with Canada supplying 40,100 b/d, and Asia 34,600 b/d. The UK imports averaged 10,100 b/d as Valero sends over volumes from its Milford Haven refinery in the UK.

Data from CAS shows that as of Nov. 25, November imports are comprised of 42,900 b/d of gasoline and MGBC from the Bahamas, with Canada and Singapore exporting 10,200 b/d and 9.200 b/d, respectively.

Also, CAS shows 1.32 million barrels of gasoline and MGBC are in transit to California ports due to arrive between Nov. 25 and Dec. 14, with over 1 million of the barrels coming from the Buckeye's Borco hub in the Bahamas.

Lower California production

Imports of gasoline and MGBC have increased as in-state production of CARBOB gasoline has dropped. Production of California's specially formulated, cleaner burning CARBOB dropped to 4.427 million barrels or about 632,000 b/d for the week ended Nov. 14, down over 170,000 b/d from the year earlier, according to California Energy Commission data.

California's import volumes of gasoline and MGBC will increase further when Valero shuts in April 2026 its 145,000 b/d Benicia refinery. The refinery, the newest in California, is 9% of the state's current 1.622 million b/d refining capacity. And while the state, in a reversal of previous policy, has tried to keep the refinery from closing, it appears they have been unsuccessful.

The refinery, which serves the San Francisco Bay area, is 22% the region's refining capacity and supplies 74,000 b/d of gasoline.