Valero Energy Corp. has revealed that it plans to acquire a former LyondellBasell Industries NV Houston refinery. The acquisition will see Valero restart 165,000 b/d of light sweet crude oil processing by yearend 2027.

Cost of the Acquisition

Valero Refining-Texas LP reached an agreement to acquire the shuttered full-conversion refinery from LyondellBasell for $320.5 million. Furthermore, the transaction will include approximately 700 acres on the Houston Ship Channel adjacent to the Valero Houston Refinery, 13.5 million bbl of storage capacity, and logistics infrastructure including marine docks, rail-loading facilities, and truck racks.

Valero Refining-Texas LP reached an agreement to acquire the shuttered full-conversion refinery from LyondellBasell for $320.5 million.
Valero Refining-Texas LP reached an agreement to acquire the shuttered full-conversion refinery from LyondellBasell for $320.5 million.

Impact of the Acquisition

The acquisition will help to curb intermediate feedstock shortages across Valero’s US Gulf Coast refining system. Therefore, this will cut reliance on third-party purchases while creating opportunities to integrate refining and logistics operations. Moreover, this facility will join other refineries in ensuring fuel security in the US.

Additionally, incremental FCC and hydrocracker feed production would cut external feedstock sourcing. On the other hand, excess hydrotreating capacity could be used to upgrade intermediates from other Valero US Gulf Coast refineries, the company said.

LyondellBasell Ceases Operations at Houston Refinery

LyondellBasell announced plans in April 2022 to cease operation of subsidiary Houston Refining LP’s 268,000-b/d refinery. This move is part of its exit from the crude oil refining business. However, due to delays, the refinery was shuttered in March 2025.

LyondellBasell Weighs Potential Investment Options for the Site

Over the years, LyondellBasell evaluated options for the site. The viable options included a potential plan to transition the refinery into a hydrogen production site. Ultimately, the company said, it determined selling the asset “offered the most compelling opportunity” to advance the company’s priorities.

Closing of the transaction is expected by yearend, subject to customary closing conditions.

Valero Houston Refinery Expansion Factsheet

Acquirer: Valero Refining-Texas LP (subsidiary of Valero Energy Corp.)

Seller: LyondellBasell Industries NV (Houston Refining LP)

Purchase Price: $320.5 million

Location: 700 acres on the Houston Ship Channel, adjacent to Valero’s existing Houston refinery

Target Restart: Year-end 2027

Restart Capacity: 165,000 barrels per day (b/d) of light sweet crude oil processing

Key Assets:

  • 13.5 million barrels of storage capacity
  • Logistics infrastructure including marine docks, rail-loading facilities, and truck racks

Strategic Intent:

  • Alleviates intermediate feedstock shortages across Valero’s US Gulf Coast refining network
  • Reduces dependence on third-party feedstock purchases
  • Uses excess hydrotreating capacity to upgrade intermediate streams from other regional Valero refineries

Background: LyondellBasell shuttered the former 268,000 b/d refinery in March 2025 as part of its strategic exit from crude refining.

Expected Closing: Year-end 2026, subject to customary closing conditions.