LyondellBasell Industries has announced the permanent closure of its Houston refinery, which has a capacity of 263,776 barrels per day, set to begin on January 28, 2025. This decision follows a planned schedule revealed in 2023 after unsuccessful attempts to sell the facility [376e64aa]. The closure will result in layoffs of up to 400 employees, with job reductions expected to commence two months after the refinery shuts down [376e64aa].
The closure will involve a phased shutdown, starting with the first crude distillation unit in January, followed by the second unit, which is scheduled to close between mid and late February [376e64aa]. In a shift towards sustainability, Lyondell plans to convert hydrotreaters at the refinery for the future production of plastic pellets from recycled materials [376e64aa]. This refinery closure is part of a broader trend in the U.S. oil industry, with Phillips 66 also planning to close its Los Angeles refinery by the end of 2025 [376e64aa].
This development comes amid Glencore's recent strategic moves in the oil sector, including a significant increase in oil procurement from the Middle East for its Bukom refinery in Singapore, which it acquired from Shell earlier this year [882aaaa0]. Glencore's operations are expanding with the hiring of Aditya Ravavarapu from BP to lead its Asian oil trading team, reflecting a deeper engagement in physical oil markets [882aaaa0].
Meanwhile, the Southern Refineries Company in Iraq has been enhancing its export capabilities, recently announcing a new refining unit with a capacity of 70,000 barrels per day, expected to significantly boost output [2840110b]. In Libya, the Waha Oil Company has resumed crude oil pumping operations after extinguishing a fire that halted production [de148284].
As the U.S. Gulf Coast refineries processed 9.31 million barrels of crude oil daily last week, marking the highest output for this time of year since 1992, the refining landscape continues to evolve [3453f3b2]. The interdependence between U.S. and Canadian oil supplies remains vital, as Canadian crude oil supplied over 23% of the feedstock for U.S. refineries in 2022 [d1e125fb].