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ENB Pubnote: This is an excellent article from Nathan Hammer’s Substack. I recommend subscribing for his excellent articles on energy.
The closure process is set to begin in January 2025, with the company expecting to complete its exit from the crude refining business by the end of the first quarter of 2025.
Houston Refinery Closure Details
Key aspects of the LyondellBasell Houston refinery closure include:
– Capacity: 264,000 barrels per day
– Products: Gasoline, diesel fuel, and other petroleum products
– Closure timeline: Phased shutdown from January to February 2025
– Impact: Hundreds of workers affected
The shutdown will occur in stages, with specific units closing in January and February 2025. LyondellBasell is currently evaluating options for the site’s future use, which could involve repurposing the existing infrastructure for potential low-carbon projects.
Industry Context and Other Refinery Developments
While LyondellBasell exits the refining business, other companies are also making significant changes:
– Phillips 66 recently announced the closure of its Los Angeles refinery by the end of 2025, which accounts for approximately 8% of California’s refining capacity.
– In contrast to these closures, Phillips 66 has invested heavily in renewable fuels, spending approximately $1.25 billion to convert its San Francisco Refinery in Rodeo into one of the world’s largest renewable fuels facilities.
– The proposed Cushing Refinery is still on hold pending land acquisition, but still planned to move forward.
Looking Ahead
As these transitions unfold, the impact on local economies and fuel markets remains to be seen. However, it’s clear that major oil companies are repositioning themselves in response to evolving market conditions, stricter environmental regulations, and increasing demand for lower-carbon fuels.
Sources:
[1] https://www.argusmedia.com/en/news-and-insights/latest-market-news/2624316-lyondell-houston-refinery-closure-to-begin-in-january
[2] https://www.hartenergy.com/exclusives/lyondellbasell-pushes-back-houston-oil-refinery-closure-205293
[3] https://www.lyondellbasell.com/en/news-events/corporate–financial-news/lyondellbasell-announces-delay-in-refining-business-exit/
[4] https://www.bloomberg.com/news/articles/2024-11-01/lyondellbasell-to-start-mothballing-106-year-old-texas-refinery
[5] https://www.politico.com/news/2024/10/16/phillips-66-california-refinery-closure-00184058
[6] https://www.latimes.com/environment/story/2024-10-17/phillips-66-refinery-closure-a-welcome-surprise-to-activists
[7] https://www.latimes.com/business/story/2024-10-16/phillips-66-will-shut-historic-wilmington-refinery
[8] https://www.ogj.com/refining-processing/article/55236329/phillips-66-to-permanently-shutter-los-angeles-refinery
Nathan’s Substack – Tell him Stu sent you.
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