LyondellBasell, a prominent chemical giant based in Houston, is poised to begin the shutdown process of its Houston refinery this weekend, a strategic move signaling its departure from the refining industry. This decision is anticipated to affect up to 400 employees, with layoffs projected to commence approximately two months after the shutdown begins. The refinery’s complete cessation of operations is expected by mid to late February, marking a significant shift in the company’s operational strategy.
The refinery, strategically located on the bustling Houston Ship Channel, has been a notable producer of transportation fuels, including gasoline, diesel, and jet fuel since its inception in 1918. LyondellBasell has announced plans to convert the refinery’s existing hydrotreaters to produce plastic pellets from recycled materials by 2027. This conversion is part of a broader industry trend focusing on sustainable practices and addressing environmental concerns associated with traditional refining processes.
A spokesperson from LyondellBasell assured that the shutdown would be executed with utmost caution to ensure community safety, environmental protection, and worker security. The timeline for the gradual ramp-down has been meticulously planned, starting towards the end of January and continuing through February. This methodical approach underscores the company’s commitment to maintaining rigorous safety standards throughout the transition.
In November, LyondellBasell revealed its intention to shutter the refinery and explore various potential reuses for the site. However, while there was consideration for converting the refinery into a hydrogen production facility, the company recognized the challenges inherent in such a transformation. The decision reflects wider industry challenges faced by traditional refineries, which are increasingly finding it necessary to adapt to evolving environmental regulations and market demands for cleaner energy alternatives.
This closure is part of a larger trend in the refining industry, with Lyondell’s plant being the first of two refineries planned for closure this year. Phillips 66 has also announced plans to close its Los Angeles refinery by the end of 2025, indicating a broader shift in the industry. These changes come as the industry grapples with increasing pressure to reduce carbon emissions and align with global sustainability goals.
Coinciding with these operational changes, LyondellBasell is actively renovating its new headquarters at Williams Tower with an investment of $61 million. This move is part of the company’s broader plan to relocate from its namesake tower in downtown Houston by 2025. As one of the largest private employers in Houston, LyondellBasell’s strategic relocations and operational shifts reflect its ongoing adaptation to the dynamic economic landscape of the region.
The company’s strategic shift and investment in its new headquarters signal its commitment to maintaining a strong presence in Houston, while also pivoting towards more sustainable and innovative business practices. LyondellBasell’s transition showcases a proactive approach to addressing industry challenges and capitalizing on new opportunities in the evolving chemical and energy sectors.