Lyondell Basell Has Turned Away at Least One Would-Be Houston Refinery Buyer
08.01.2022 - NEWS

July 31, 2022 [Reuters] – Chemical maker Lyondell Basell Industries (LYB.N) has turned away at least one would-be buyer of its Houston crude oil refinery due for closure in December 2023, said sources familiar with the matter.


The would-be buyer is also located on the Houston Ship Channel and has the resources to finance a purchase of the 263,776 barrel-per-day (bpd) Houston refinery, the sources said.

A Lyondell spokesperson did not immediately reply to a request for comment on Thursday.

Five refineries closed during the COVID-19 pandemic as demand fell amid lockdowns and work-from-home policies. U.S. refining capacity dropped by 1.1 million bpd to 17.9 million bpd this year, according to U.S. Energy Information Administration data. The contraction in refining capacity has contributed to a sharp increase in fuel prices worldwide.

Lyondell is scheduled to report second-quarter earnings on Friday.

Sources familiar with mergers and acquisitions in the U.S. refining industry said it appeared Lyondell has ended efforts to sell the refinery.

People familiar with plant operations said Lyondell dropped marketing efforts before announcing in April plans to close the refinery, which employs about 800 people, in 2023.

Faced with a $1 billion pricetag to keep the refinery operating after 2023, Lyondell decided to cease production when no acceptable buyers were found in 2021, said Chief Financial Officer Michael McMurray in June.

The company sees opportunities for the refinery’s hydrotreating units, which can be converted for upgrading hydrocarbons made from recycled plastic, McMurray said.

Shutting the refinery will put the company half-way to its target for cutting carbon emissions by 2030, which will yield financial benefits, he said.

The refinery supplied feedstocks to Lyondell’s chemical plants when it was a regional producer early in this century. But as Lyondell expanded into a global chemical producer, the refinery became a leftover.

Lyondell mounted at least two campaigns to sell the refinery. Both failed.

Pro Trial: Access 10,390 Tank Terminal and Production Facilities

10,390 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

PNOC Seeks Creation of Strategic Petroleum Reserves
08.12.2022 - NEWS
August 12, 2022 [ The Philippine Star Global ] – State-run Philippine National Oil Co. (PNOC) w... Read More
Egypt to Double Oil Storage Capacity at Al-Hamra Port In 3 Years: Asharq
08.12.2022 - NEWS
August 12, 2022 [ Arab News ] – Egypt is working to double the oil storage capacity at Al-Hamra... Read More
Gulf Unit Invests
08.12.2022 - NEWS
August 12, 2022 [ Bangkokpost ] – Gulf International Investment (Hong Kong) Ltd (Gulf HK), a wh... Read More
Exlusive Uniper Could Swap Australian LNG for Atlantic Gas to Supply Europe Quicker
08.12.2022 - NEWS
August 12, 2022 [ Reuters ] – Germany’s Uniper is prepared to swap liquefied natural gas ... Read More