Valero acquires idle Houston refinery for $320.5 million, with plans to restart production by the end of 2027. 2026-11-02 09:20:28 Source:ChemNet 中文 U.S. independent refiner Valero has reached an agreement to acquire an idle refinery in Houston, Texas, from LyondellBasell for $320.5 million, with plans to restart operations at the facility by the end of 2027. Valero announced the deal on Friday, with the company planning to first restart 165,000 barrels per day (bpd) of low-sulfur light crude processing capacity by the end of 2027. Valero stated that the acquisition also creates potential conditions for subsequent investment in building high-complexity units to process heavy sour crude oil. The refinery ceased operations in February 2025, spans 700 acres, and is located along the Houston Ship Channel, adjacent to Valero's existing 205,000-bpd refinery. The site is equipped with 13.5 million barrels of storage capacity, as well as complete logistics infrastructure including docks, rail loading facilities, and truck loading racks. Lane Riggs, CEO of Valero, said: "This acquisition is a rare strategic opportunity to expand our company's footprint along the U.S. Gulf Coast at a price far below the cost of rebuilding, and to strengthen the long-term strength of our refining system." The transaction is subject to customary closing conditions, including completion of the waiting period process required under the U.S. Hart-Scott-Rodino Antitrust Improvements Act. The acquisition comes against the backdrop of the U.S. government encouraging the revitalization and restart of recently shut-down refining facilities. Notably, just last week, Valero announced it would shut down its Benicia, California refinery, which has a 145,000-bpd processing capacity. Valero cited the challenging operating environment on the West Coast as the main reason for the closure. [Copyright Notice] In the spirit of openness and inclusiveness of the Internet, ChemNet welcomes all media and institutions to reprint and quote its original content. If reprinted, please mark the source ChemNet. If you find any copyright issues with articles on this website, please contact Chemnet at [email protected]. Important information. Commodity price chart. 01/11/2026 | Product name | Price (yuan/ton) | Price Limit | | Dichloromethane | 3270.00 | +14.94% | | Propylene | 12001.00 | +13.46% | | Ammonium paratungstate | 520000.00 | +12.23% | | Tungsten concentrate | 348333.34 | +11.88% | | Tungsten concentrate | 349333.34 | +11.85% | | Meta-toluidine | 11000.00 | -10.81% | | Cobalt | 211600.00 | -9.15% | | Diethylene glycol | 7886.67 | +9.03% | | Formic acid | 2500.00 | +8.70% | | 1,3-butadiene | 14600.00 | +8.68% | | 2-EH | 10500.00 | +8.25% | | Acrylamide | 11233.33 | +8.01% | | LNG | 7484.00 | +7.87% | | PP | 11483.33 | +6.99% | | Acetone | 9037.50 | +6.79% | Scan to access the mobile version View the latest and hottest chemical news content

Valero Houston Refinery expansion: Valero to acquire LyondellBasell site for $320.5M. Published on Oct 31, 2026 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. 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.

US oil companies are investing to get more fuel from refineries and reopen shuttered plants, as conflicts in Russia and Iran squeeze supply. US gasoline stays above $4 per gallon, while diesel sits near record highs above $6. ExxonMobil reported third-quarter profit of $15.4 billion, up from $7.5 billion a year earlier. Chevron earned $9.9 billion, against $3.5 billion. ExxonMobil said it spent around $17 billion on refining, which should add 100,000 barrels per day of distillate capacity. Valero Energy agreed to buy a shuttered Houston refinery from LyondellBasell for $320.5 million, with an initial restart planned by the end of 2027. ExxonMobil chief executive Darren Woods said normal supply could take "well through to next year" to return, "but it could be longer than that.