Valero agrees to buy former Houston refinery site for 320 million dollars

Valero Energy Corporation announced that its wholly owned subsidiary, Valero Refining-Texas, signed a definitive agreement to purchase all outstanding equity interests of LYB Houston Hub Holdings from a subsidiary of LyondellBasell Industries. The total purchase price for the acquisition is 320.5 million dollars, subject to customary closing adjustments.

The transaction involves an approximately 700-acre facility located directly adjacent to Valero existing Houston refinery along the Houston Ship Channel. The property previously operated as a petroleum refinery before commercial refining activities at the location were halted.

Valero currently plans to initially restart 165000 barrels per day of light sweet crude processing capacity at the acquired facility by year-end 2027. The newly acquired infrastructure also provides an opportunity to later invest in high-complexity, heavy sour crude processing operations.

Lane Riggs, chairman, chief executive officer and president of Valero, said the purchase offers a unique opportunity to strategically expand the company footprint on the United States Gulf Coast. He said the transaction will enhance the long-term strength of the refining system at a fraction of replacement value while generating attractive commercial optimization opportunities.

Valero operates 14 petroleum refineries across the United Kingdom, Canada, and the United States with a combined throughput capacity of approximately 3.0 million barrels per day. The corporation also participates in a joint venture producing low-carbon fuels and owns 12 ethanol plants in the United States Mid-Continent region.

Completion of the agreement remains subject to customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Valero has also prepared an investor presentation related to the transaction on its website. Officials expect the final closing of the transaction to occur by the end of 2026.