Valero to acquire former LyondellBasell Houston oil refinery, restart 165,000 b/d by end-2027

Oil & Gas Journal · Mikaila Adams · 2026-10-30 00:00 UTC

In addition to light sweet crude oil processing, CEO Lane Riggs said the site could support future investment in heavy sour crude processing.

Valero Energy Corp. plans to acquire a former LyondellBasell Industries NV Houston refinery and restart 165,000 b/d of light sweet crude oil processing by yearend 2027.

Valero Refining-Texas LP has agreed to acquire the shuttered full-conversion refinery from LyondellBasell for $320.5 million. The transaction includes about 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.

The acquisition will help address intermediate feedstock shortages across Valero's US Gulf Coast refining system, reducing reliance on third-party purchases while creating opportunities to integrate refining and logistics operations, the company said in an Oct. 30 presentation. Incremental FCC and hydrocracker feed production would reduce external feedstock sourcing, while excess hydrotreating capacity could be used to upgrade intermediates from other Valero US Gulf Coast refineries, the company said.

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