LyondellBasell (NYSE: LYB) has entered into an agreement to sell its former Houston Refinery site and related assets to Valero Refining-Texas, L.P., a wholly owned subsidiary of Valero Energy Corporation (NYSE: VLO), for $320.5 million.
The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.
Under the agreement, Valero will assume responsibility for ongoing site operations, environmental liabilities, pension costs and other employee-related obligations. The transaction also provides for continued employment of the refinery site’s workforce.
The sale is part of LyondellBasell’s broader portfolio restructuring strategy, which focuses on divesting non-core assets and directing capital toward businesses aligned with its long-term priorities.
“This transaction reflects the disciplined approach we are taking to transform our portfolio and create long-term value,” said Peter Vanacker, CEO of LyondellBasell. “It provides an opportunity to realize value from a non-core asset while positioning the site, its infrastructure and employees with an owner whose core business is refining.”
Following its decision to cease refining operations at the Houston facility, LyondellBasell evaluated several options for the property before determining that a sale would best support its strategic objectives.
The agreement transfers the former refinery site to Valero, whose core operations include petroleum refining, while allowing LyondellBasell to reduce its exposure to refinery-related operating and environmental obligations.
LyondellBasell said it will work with Valero to facilitate an orderly transition of the property, its infrastructure and employees following completion of the transaction.
