LyondellBasell weighing strategic sale of its Houston refinery
13 September 2021
Refining and Petrochemicals giant LyondellBasell Industries NV on Wednesday announced plans to sell its Houston crude oil refinery as part of the strategic options for its Gulf Coast-based refining segment.
The decision comes follows the heavy losses suffered by US refiners last year as the coronavirus pandemic slashed demand for motor fuels.
"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, CEO of LyondellBasell. "To that end, we are actively gauging market interest in this business with the goal of delivering the greatest value to all our stakeholders."
LyondellBasell's Houston Refinery is one of the largest refineries in the US, with a rated capacity to transform 268,000 barrels per day of crude oil into high-value transportation fuels such as reformulated gasoline, ultra-low sulfur diesel and jet fuel, as well as other products, including lubricants, chemical intermediates and petroleum coke. The facility is strategically located on the Houston Ship Channel and covers approximately 700 acres. The refinery has been under company ownership since 2006.
The company, however, aid 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.
Actual results could differ materially based on factors including, but not limited to, market conditions, the business cyclicality of the refining industry, uncertainties and impacts related to the extent and duration of the pandemic, pricing pressures, and the company’s ability to identify, evaluate and complete any strategic alternative related to the refinery.
Bank of America is acting as financial advisor and Vinson & Elkins is legal counsel to the company for this process.
LyondellBasell is one of the largest plastics, chemicals and refining companies in the world, with a presence across the world. The company produces materials and products that offer solutions to lightweight and flexible food packaging, stronger and more versatile pipes, plastic materials for auto components and electronics and appliances.
LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies.?In 2021, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the fourth consecutive year.?
LyondellBasell joins a number of other operators that have put plants up for sale. Royal Dutch Shell Plc last year offered its Convent, Louisiana, refinery and Phillips 66 recently put a Belle Chasse, Louisiana, plant on the market.