LyondellBasell Sells Former Houston Refinery to Valero for $320.5 Million
Key Facts
LyondellBasell announced on October 30, 2026, an agreement to sell its former Houston refinery site and related assets to Valero Refining-Texas, a wholly owned subsidiary of Valero, for $320.5 million. LyondellBasell said the total sale price is subject to adjustments at closing, and that Valero will assume responsibility for site operations, environmental liabilities, pension costs and related employee obligations. The deal transfers the site from a company that halted refining there to an owner that intends to restart part of its capacity. LyondellBasell ended commercial operations at the refinery in February 2025, before beginning to wind down its refining business.
LyondellBasell expects to complete the sale in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions. The company said the agreement “provides continuity of employment for the site workforce” and that it looks forward to working with Valero on an orderly transition. Under the agreement, responsibility for the ongoing site, environmental liabilities, pension costs and related employee obligations will transfer to the buyer, along with the assets included in the sale. LyondellBasell said the deal offers the best opportunity to advance its strategic priorities after it evaluated options for the site. It added that the decision to halt refining preceded that review, explaining that the sale “presented the most compelling opportunity to advance the company’s strategic priorities.”
The announcement marks a change in the site’s course after LyondellBasell explored other uses for it. In 2023, the company postponed its exit from refining from the end of that year to no later than the end of the first quarter of 2025, citing favorable inspection results and consistent performance. Options announced at the time included using recycled and renewable feedstocks, as well as green and blue hydrogen. The company also considered making use of existing site assets, including pipelines, tanks and utilities. After halting refining, it said its review of alternatives found that a sale would better serve its strategic priorities.
LyondellBasell had also proposed developing commercial-scale chemical recycling infrastructure using its proprietary MoReTec technology, alongside options to produce renewable and bio-based feedstocks. The facility no longer processes crude oil, but continued to store and transport materials related to the company’s regional operations, while retaining some systems to support a safe and orderly wind-down. The site is located on the Houston Ship Channel and spans about 700 acres. The company’s fact sheet described the refinery as designed to process high-sulfur crude and produce gasoline, ultra-low-sulfur diesel and other products. Valero’s plan to restart new processing capacity adds an operational dimension to a site where refining activity had ceased.
Valero already operates a separate refinery in Houston that processes sweet crude and intermediate oils to produce gasoline, jet fuel and diesel. The facility has stated capacity of 255,000 barrels per day and employs about 315 people. The deal gives the company an additional site and assets in the city, while restarting the new capacity remains tied to its preliminary plan and completion of the sale. Regulatory approvals and closing conditions are expected to determine the timing of the site’s transfer during the fourth quarter of 2026.