The Arctic Metagaz was part of a Russian shadow fleet used to circumvent sanctions imposed on the country's oil and gas after its full-scale invasion of Ukraine in February 2022. It was struck in a suspected drone attack close to Maltese waters earlier this month, causing a huge hole.
The closure could cut hundreds of jobs and is expected to bruise the tax base of Benicia, a community anchored by the refinery that has also endured toxic pollution. But the company may replace its gas output with imports by ship, buffering California's fuel supply from potential shortages and price hikes, according to Newsom's office. It's unclear how much gasoline Valero plans to import, and the company has so far offered few answers.