LyondellBasell considering sale of Houston Refinery
LyondellBasell announced it is weighing strategic options for its U.S. Gulf Coast-based Refining Segment, including a potential sale.
LyondellBasell, based in Houston, Texas, U.S.A., is one of the largest plastics, chemicals and refining companies in the world.
“While the Houston Refinery is a valuable, well-performing asset, we have long held the belief that it may be even more valuable as part of a larger refining system,” said Bob Patel, who is retiring as CEO of LyondellBasell effective December 31, 2021.
“To that end, we are actively gauging market interest in this business with the goal of delivering the greatest value to all our stakeholders.”
Houston Refinery traces its origin to 1918
The Houston refinery was one of the first petroleum refineries constructed on the Houston Ship Channel and traces its origin to 1918. The initial plant was operated by Sinclair Refining and later by Atlantic Richfield Company (ARCO). The refinery was part of a joint venture with CITGO Petroleum from 1993 –2006. The company reacquired full ownership of the plant in 2006 and the refinery, operating as Houston Refining LP, is now a wholly owned subsidiary of LyondellBasell.
Covering approximately 710 acres along the city limits of Houston and Pasadena, Texas, the refinery is one of the largest in the U.S., with a capacity of 268,000 barrels per day (bpd) of heavy crude oil. The refinery transforms very heavy high-sulfur crude oil into clean fuels, including reformulated gasoline and ultra-low-sulfur diesel fuels. Other products include heating oil, jet fuel, petrochemical feedstocks, aromatics, lubricants and petroleum coke.
The company said it cannot provide assurances regarding the outcome or timing of this process and does not intend to make further announcements regarding this review unless and until it is required or appropriate.
Bank of America is acting as financial advisor and Vinson & Elkins is acting as legal counsel for this process.