LyondellBasell has confirmed plans to shut down its Houston refinery by the end of the first quarter of 2025, a move that is expected to result in over 400 layoffs.
The company confirmed the closure timeline in a statement, reiterating its focus on safely winding down operations to protect the community, environment, and employees.
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“LyondellBasell is on schedule to cease refining operations at the Houston Refinery at the end of the first quarter of 2025. As previously mentioned, the gradually planned ramp down begins toward the end of January and continues through February. Our focus is on safely ceasing refining operations to protect the community, environment and our workers,” the company said in a statement sent to KPRC 2.
The closure, first reported by Reuters, is expected to result in over 400 layoffs.
Background
LyondellBasell’s decision to exit the refining business comes after two failed attempts to sell the plant and follows the closure of five other U.S. refineries in the last two years.
“This was a difficult decision,” Ken Lane, interim CEO of LyondellBasell told KPRC 2′s Zachery Lashway back in 2022. “We understand this has a very real impact on our refinery employees, their families, and the community. We are committed to supporting our people through this transition.”
READ MORE: ‘These decisions are never easy’: LyondellBasell to close Houston refinery
Lane emphasized that the closure aligns with the company’s broader decarbonization and sustainability objectives. The prime location of the Houston Refinery, according to Lane, offers potential opportunities for future strategic initiatives, including advancing circularity.
LyondellBasell initially announced plans to close the Houston Refinery in 2023 after determining that exiting the refining business was the “best strategic and financial path forward” for the company. Despite considering potential transactions and alternatives for the site, the company ultimately decided on a full closure.
At the time, Lane noted, “These decisions are never easy. While this was a difficult decision, our exit of the refining business advances the company’s decarbonization goals, and the site’s prime location gives us more options for advancing our future strategic objectives.”
The refinery’s closure is part of a broader trend in the U.S. refining industry, as facilities adapt to changing energy markets and increasing focus on renewable and sustainable energy sources.
