Valero Energy Corp. plans to acquire a former LyondellBasell Industries NV Houston refinery and restart 165,000 b/d of light sweet crude oil processing by yearend 2027.

Valero Refining-Texas LP has agreed to acquire the shuttered full-conversion refinery from LyondellBasell for $320.5 million. The transaction includes about 700 acres on the Houston Ship Channel adjacent to the Valero Houston Refinery, 13.5 million bbl of storage capacity, and logistics infrastructure including marine docks, rail-loading facilities, and truck racks.

The acquisition will help address intermediate feedstock shortages across Valero's US Gulf Coast refining system, reducing reliance on third-party purchases while creating opportunities to integrate refining and logistics operations, the company said in an Oct. 30 presentation. Incremental FCC and hydrocracker feed production would reduce external feedstock sourcing, while excess hydrotreating capacity could be used to upgrade intermediates from other Valero US Gulf Coast refineries, the company said.

By yearend 2027, Valero expects to restart light sweet crude oil processing and said the site could support future investment in heavy sour crude processing, according to chairman, chief executive officer, and president Lane Riggs. The company did not provide financial details or a timetable for potential heavy sour crude processing projects.

LyondellBasell announced plans in April 2022 to cease operation of subsidiary Houston Refining LP's 268,000-b/d refinery as part of its exit from the crude oil refining business. Following delays, the refinery was shuttered in March 2025.

Over the years, LyondellBasell evaluated options for the site, including a potential plan to transition the refinery into a hydrogen production site. Ultimately, the company said, it determined selling the asset “offered the most compelling opportunity” to advance the company’s priorities.

Closing of the transaction is expected by yearend, subject to customary closing conditions.