Valero to buy, restart idled Houston oil refinery

US independent refiner Valero has agreed to buy an idled refinery in Houston, Texas, from LyondellBasell for $320.5mn and restart production by the end of 2027.

Valero plans to restart 165,000 b/d of light sweet crude processing capacity by the end of next year, the company said Friday.

The acquisition also provides opportunity to "later invest in high-complexity, heavy sour crude processing", Valero said.

LyondellBasell ceased operations at the refinery in February 2025. The facility sits on a 700-acre site near Valero's existing 205,000 b/d refinery along the Houston Ship Channel. It includes 13.5mn bl of storage capacity and extensive logistics infrastructure, including marine docks, rail loading facilities, and truck racks, Valero said.

"This acquisition is a unique opportunity to strategically expand Valero's US Gulf Coast footprint at a fraction of replacement value and enhance the long-term strength of our refining system," chief executive Lane Riggs said.

The transaction is 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 said.

The planned acquisition comes as the US administration is planning to help expand refining capacity and possibly re-open recently closed facilities.

Valero said last week it is not planning to restart its idled 145,000 b/d Benicia refinery in California, citing "a tough environment to operate" on the west coast.

By Eunice Bridges