Another U.S. Oil Refinery To Close As Lyondell Houston Plant Shuts Down

Chemical maker LyondellBasell Industries on Friday detailed its long-planned shutdown of its 263,776-barrel-per-day (bpd) Houston oil refinery in the first quarter of 2025, Erwin Seba reported, for Reuters.

The planned closure marks the latest in a wave of U.S. refinery closures as motor fuel demand is expected to peak this decade and decline under the pressure of renewable fuels and electric vehicles (EVs). I Photo: LyondellBasell

The planned closure marks the latest in a wave of U.S. refinery closures as motor fuel demand is expected to peak this decade and decline under the pressure of renewable fuels and electric vehicles (EVs).

In January, one of the facility’s crude distillation units (CDU) and coker production train will shut down, Lyondell refining chief Kim Foley told analysts on a call discussing third-quarter results.

In February, the second CDU-coker production train, which supplies the gasoline-producing fluid catalytic cracker (FCC) and ancillary units, will shut down, ending motor fuel production, Foley said.

For the fourth quarter of this year, Lyondell plans to operate the refinery at 90% of its capacity. Lyondell originally planned to close the Houston refinery in 2023 but extended its life due to strong fuel margins.

Last month, rival U.S. refiners Phillips 66 and Valero Energy announced plans to close one California refinery and consider shutting down two others in that state.

"The refinery, if you look back historically, was originally designed to process in-state California crude production, which has declined by about 75%," CEO Mark Lashier said.