Valero to buy LyondellBasell Houston refinery for $320.5 million
The purchase secures 165,000 barrels per day of processing capacity near the Gulf Coast, with operations resuming by late 2027.
By Kofi Costa ·
Valero has agreed to purchase a dormant refinery in Houston for $320.5 million.
The facility, located on the Houston Ship Channel, previously processed light sweet crude. It sits adjacent to an existing Valero plant on a 700-acre site. The company targets a restart date by the end of 2027. This move will add 165,000 barrels per day to Valero's processing capabilities.
LyondellBasell sold the asset as part of its exit from the refining sector. The refinery ceased operations in February 2025. At that time, it employed approximately 400 people and produced gasoline, diesel, and jet fuel. The company laid off 345 workers during the shutdown. LyondellBasell had previously explored converting the site into an advanced recycling facility but paused the project to assess market conditions.
LyondellBasell CEO Peter Vanacker called the sale a disciplined approach to portfolio transformation. He stated the deal allows the company to realize value from a non-core asset. He noted the move positions the site with an owner whose primary business is refining. Valero CEO Lane Riggs described the purchase as a strategic expansion of the company's U.S. Gulf Coast footprint. He said the price represents a fraction of the cost to build new capacity.
Valero will assume responsibility for site operations and related obligations. These include environmental, pension, and employee liabilities. The transaction is expected to close by the end of 2026, subject to regulatory approvals and other standard conditions. The acquisition aligns with a broader strategy to enhance the long-term strength of Valero's refining system.
The sale coincided with LyondellBasell reporting $758 million in profit for the third quarter. The company also recorded $8.5 billion in revenue during that period. Valero indicated it may invest in equipment for high-complexity, heavy sour crude in the future. For now, the immediate focus is on bringing the 165,000 barrels per day of light sweet crude capacity back online.
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