Valero has agreed to buy LyondellBasell’s former Houston refinery for $320.5 million and plans to bring 165,000 barrels per day of refining capacity back into service by the end of 2027.
The proposed sale includes an approximately 700-acre site on the Houston Ship Channel, next to Valero’s existing Houston refinery. The deal is expected to close by the end of 2026, subject to usual conditions. Those conditions include a review under antitrust rules.
Valero says it initially plans to process light crude with low sulfur at the facility. The purchase could also make it possible to later invest in equipment to process heavier crude with more sulfur. The property includes storage capacity of 13.5 million barrels.
It also includes logistics facilities such as marine docks, rail-loading facilities and truck-loading racks. LyondellBasell closed the refinery in 2025 as part of its decision to leave the refining business. LyondellBasell says Valero will take responsibility for operating the site, environmental obligations, pension costs and related responsibilities to employees.
LyondellBasell described the sale as a step in its plan to change its portfolio. It said the sale provides for continued employment for the site’s workforce. The restart is still a plan, not a completed project.
The sale still has to meet its closing conditions.