Valero Plans 165,000-Bpd Houston Refinery Restart


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   HOUSTON (DTN) -- Valero Energy Corp. plans to restart 165,000 bpd of light 
sweet crude processing capacity at LyondellBasell's idled Houston refinery by 
the end of 2027 under a $320.5 million acquisition agreement announced Friday 
(10/30).

   The transaction involves approximately 700 acres along the Houston Ship 
Channel, adjacent to Valero's existing Houston refinery. LyondellBasell ceased 
refining operations at the facility in February 2025.

   Valero said the acquisition provides an opportunity to expand its U.S. Gulf 
Coast refining operations, with potential future investments in more complex 
processing facilities capable of handling heavier, sour crude.

   The agreement, reached Thursday (10/29) through Valero's wholly owned 
subsidiary, Valero Refining-Texas, L.P., is expected to close by the end of 
2026, subject to regulatory approvals and customary closing conditions. The 
purchase price remains subject to closing adjustments.

   Valero Chairman and CEO Lane Riggs said the acquisition would allow the 
company to expand its Gulf Coast refining footprint at a fraction of the cost 
of constructing replacement capacity, while creating opportunities to optimize 
operations across its refining system.

   Under the agreement, Valero will also assume responsibility for ongoing site 
operations, environmental liabilities, pension costs and other employee-related 
obligations, according to LyondellBasell.




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