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Fire may set off early closure of Lyondell refinery, sources state

A Thursday night fire at Lyondell Basell Industries' 263,776 barrelperday (bpd). Houston refinery may lead the business to completely shut the. plant ahead of its arranged closure at the end of March 2025,. individuals acquainted with plant operations said on Friday.

Workers were removing insulation around the reactor of the. 110,000-bpd gasoline-producing fluidic catalytic cracker (FCC). on Friday, the sources stated.

The length of repair work needed on the reactor, where fine. powder catalyst transforms gas oil into incomplete fuel, could. be decisive in identifying how long the refinery will continue. to run.

A Lyondell spokesperson decreased on Friday to discuss the. status of the FCC, however did say the business stays dedicated to. exiting refining.

The delay of our oil refining service exit to no later on. than completion of the very first quarter of 2025 does not alter our. decision to cease operation of the refinery, the representative. said. The extension will minimize labor force impacts as we. continue to establish future options for the site.

Chemical maker Lyondell at first announced it planned to. shut the refinery at the end of 2023, to avoid the expense of. required overhauls at the refinery. Experts approximated the business. would need to spend up to $1 billion for required overhauls.

Lyondell then said in May 2023 it would extend the deadline. to no behind end of the first quarter 2025, since of. higher confidence in the refinery's reliability.

Lyondell CEO Peter Vanacker said on Aug. 2 the refinery was. a capital-intensive asset that has historically just delivered. short periods of profitability.

During the Aug. 2 teleconference in which Vanacker spoke,. the company said the refinery would operate in the third quarter. at 90% of its capacity.

(source: Reuters)