(Source: Shutterstock.com)
LyondellBasell Industries is pushing back plans to shutter its oil refinery on the Houston Ship Channel.
The petrochemical company had anticipated shuttering the Houston oil refinery by the end of 2023.
But LyondellBasell now plans to close the refinery and fully exit the refining business by the end of first-quarter 2025, the company announced May 31. The company is evaluating new uses for the site, including hydrogen production or other green energy uses.
“Favorable inspections and consistent performance” has given LyondellBasell confidence to continue operations at the century-old Houston refinery, the company said in a news release.
RELATED: LyondellBasell Plans Quick Sale of Houston Oil Refinery
The refining complex, which produces products including gasoline, diesel, jet fuel and lubricants, traces its origins back to 1918 and was one of the first petroleum refineries built along the Houston Ship Channel.
The company anticipates a moderate amount of maintenance spend to support the extension through 2023 and 2024.
The Houston refinery has a crude oil processing capacity of approximately 268,000 barrels per day (bbl/d), according to regulatory filings.
Fossil past, green future
LyondellBasell tried to sell the oil refinery in 2021 but failed to find a buyer. Now, the company is evaluating future options for the site after exiting the refining sector, including developing a hub for producing renewable and circular products.
“Our plans to transform the site for future growth beginning in 2025 are aligned with our purpose of creating solutions for everyday sustainable living,” LyondellBasell CEO Peter Vanacker said in a statement. “It is exciting to have a suite of future projects in the early stages of development.”
Multiple use cases are being evaluated for the Houston Ship Channel site, including hydrogen production and projects using renewable and recycled feedstocks.
The company aims to use existing infrastructure at the refinery site, including hydrotreaters, pipelines, tanks, utilities, buildings and lab facilities, to support the potential low-carbon projects being considered.
Recommended Reading
Dallas Fed: Trump Can Cut Red Tape, but Raising Prices Trickier
2025-01-02 - U.S. oil and gas executives expect fewer regulatory headaches under Trump but some see oil prices sliding, according to the fourth-quarter Dallas Fed Energy Survey.
Equinor’s Norwegian LNG Plant Likely Shuttered for a Week
2025-01-02 - An outage at Equinor’s Arctic facility, Hammerfest LNG, will temporarily close Europe’s largest LNG export facility.
Belcher: Heed the Harsh Lessons from Europe’s Net-Zero Perils
2024-12-30 - The EU’s aggressive climate stance is wreaking economic havoc and mounting regulations could hurt the U.S. LNG industry.
NatGas Prices Jump on Forecast of Widespread Freeze
2024-12-30 - The National Weather Service predicts a mid-month, lingering cold snap for much of the U.S., prompting natural gas prices to increase by roughly $0.50 per MMBtu.
Cheniere Produces First LNG in Corpus Christi Expansion Project
2024-12-30 - Houston-based Cheniere adds to quickly growing U.S. production capacity.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.