Valero Acquires Houston Refinery for $320.5 Million

en.Wedoany.com Reported - On October 29, Valero Refining-Texas, a subsidiary of U.S.-based Valero Energy, signed a definitive purchase agreement with a subsidiary of LyondellBasell Industries to acquire all equity interests in LYB Houston Hub Holdings held by the latter for $320.5 million, obtaining a shut-down refinery asset in Houston, Texas. Valero plans to restore the facility's processing capacity of 165,000 barrels per day of light sweet crude oil by the end of 2027.

The acquisition target is located along the Houston Ship Channel, covering approximately 700 acres (about 283 hectares), adjacent to Valero's existing Houston refinery. The transaction assets include the former refining facilities, approximately 13.5 million barrels of storage capacity, as well as supporting marine terminals, rail loading facilities and truck rack loading facilities.

LyondellBasell ceased refining operations at the plant in 2025. Under the agreement, Valero will assume ongoing operational responsibilities, environmental liabilities, pension costs and other employee obligations related to the site. The purchase price remains subject to adjustment based on closing conditions, with closing expected in the fourth quarter of 2026.

Valero plans to prioritize restoring the processing capacity of 165,000 barrels per day of light sweet crude oil and to evaluate production synergies between the existing units and its U.S. Gulf Coast refining system. The company also plans to study the possibility of subsequent investment in high-complexity heavy sour crude processing facilities, with the investment scale and implementation timeline for such expansion not yet determined.

The transaction remains subject to customary closing conditions, including the expiration or early termination of the waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act. Valero expects to complete the acquisition by the end of 2026, with the target for resuming refinery operations set for the end of 2027.