With Lyondell Houston plant closing, another US oil refinery vanishes

HOUSTON, Texas: On November 1, Chemical maker LyondellBasell Industries announced its plan to permanently shutter its 263,776 barrel-per-day (bpd) Houston oil refinery in the first quarter of 2025.

This is the latest in a wave of U.S. refinery closures. Motor fuel demand is expected to peak this decade and decline under pressure from renewable fuels and electric vehicles.

Lyondell's refining chief, Kim Foley, informed analysts during a call on third-quarter results that one of the facility's crude distillation units (CDU) and its associated coker production train are scheduled to shut down in January.

The second CDU-coker production train, which supplies the gasoline-producing fluidic catalytic cracker (FCC) and supporting units, is set to close in February, marking the end of motor fuel production at the facility.

For the fourth quarter, Lyondell plans to operate the refinery at 90% capacity. Initially, Lyondell had planned to close the Houston refinery in 2023 but extended its operation due to strong fuel margins.

U.S. competitors Phillips 66 and Valero Energy announced in October that they would close one refinery in California and are evaluating two other sites in the state for potential closure. Phillips 66's 139,000-barrel-per-day Los Angeles refinery is expected to cease operations by the end of 2025.

Phillips 66's 139,000-bpd Los Angeles refinery will cease production by the end of 2025.

https://www.sanantoniopost.com/news/274749816/with-lyondell-houston-plant-closing-another-us-oil-refinery-vanishes