LyondellBasell Houston-Area Refinery to Shut Down This Month

LyondellBasell will begin shutting down its Houston-area petroleum refinery in late January, the company confirmed.

Reuters first reported the closure on Wednesday, reporting that hundreds of employees would be laid off as a result. LyondellBasell is an international chemical company with its U.S. headquarters in Houston.

In a statement to Houston Public Media, a LyondellBasell spokesperson said: "LyondellBasell plans to cease refining operations at the Houston refinery by the end of the first quarter of 2025. As previously stated, the gradual planned reduction in production will begin in late January and continue through February. Our focus is on safely stopping refining operations to protect the community, the environment and our workers."

Reuters cited an anonymous source as saying that the refinery will lay off up to 400 employees in the coming months.

The Houston refinery began operations in 1918 and was the first refinery along the Houston Ship Channel. The refinery, which covers 700 acres and employs about 1,200 workers and contractors, produces gasoline, diesel, jet fuel and lubricants. LyondellBasell said the refinery had a total economic impact of $811 million as of 2018.

The company originally planned to exit the refining business and close the Houston facility in 2023, but ultimately delayed the closure until the first quarter of 2025. According to a LyondellBasell press release in May 2023, the company plans to close the refinery and transform into a "profitable circular and low-carbon solutions business."

The closure news comes more than a week before the company is scheduled to report its fourth-quarter 2024 financial results on January 31.