Inspectioneering
News

Lyondell to Begin Closure of Houston Refinery this Weekend, Sources Say

Reuters, January 23, 2025
Reuters

LyondellBasell Industries (LYB.N) will begin the permanent closure of its 263,776 barrel-per-day Houston refinery this coming weekend, said people familiar with plant operations.

Layoffs of up to 400 employees at the refinery are scheduled to start two months after the shutdown begins, the sources said.

The company said on Wednesday it is following a planned schedule to close the refinery.

"LyondellBasell is on schedule to cease refining operations at the Houston Refinery at the end of the first quarter of 2025," the company said in an emailed statement.

"As previously mentioned, the gradually planned ramp down begins toward the end of January and continues through February. Our focus is on safely ceasing refining operations to protect the community, environment and our workers," Lyondell said.

Lyondell first announced plans to shut the refinery within a year in 2023, after failing in attempts over seven years to sell it, but extended the timing of the closure by a year to the first quarter of 2025.

The company plans to convert existing hydrotreaters at the refinery site along the Houston Ship Channel for use with equipment - to be added after 2027 - that will produce plastic pellets from recycled plastic items. Hydrotreaters use hydrogen to remove sulfur from motor fuels in compliance with U.S. environmental rules.

Lyondell plans to shut the first of two crude distillation units (CDUs) and an associated coker in January. The second CDU, units fed by it and its associated coker, will shut between mid and late February. CDUs begin the refining of crude oil by breaking it down into feedstocks for all other units at the refinery. Cokers convert residual crude oil into either feedstocks for motor fuels or petroleum coke, a coal substitute.

The Lyondell plant is the first of two U.S. refineries planned for closure this year. Phillips 66 (PSX.N) said in October it will shutter its Los Angeles refinery by the end of 2025.

Valero Energy (VLO.N) is reviewing the future of its two California refineries for possible closure, citing the state's plans to phase out sales of new gasoline-powered automobiles by the middle of the next decade.


(Reporting by Erwin Seba; Editing by Marguerita Choy and Nia Williams)

Click here to read the full article from Reuters.

Copyright 2025 Thomson Reuters. Click for restrictions.

Comments and Discussion

There are no comments yet.

Add a Comment

Please log in or register to participate in comments and discussions.


Inspectioneering Journal

Explore over 20 years of articles written by our team of subject matter experts.

Company Directory

Find relevant products, services, and technologies.

Training Solutions

Improve your skills in key mechanical integrity subjects.

Case Studies

Learn from the experience of others in the industry.

Integripedia

Inspectioneering's index of mechanical integrity topics – built by you.

Industry News

Stay up-to-date with the latest inspection and asset integrity management news.

Blog

Read short articles and insights authored by industry experts.

Expert Interviews

Inspectioneering's archive of interviews with industry subject matter experts.

Event Calendar

Find upcoming conferences, training sessions, online events, and more.

Downloads

Downloadable eBooks, Asset Intelligence Reports, checklists, white papers, and more.

Videos & Webinars

Watch educational and informative videos directly related to your profession.

Acronyms

Commonly used asset integrity management and inspection acronyms.