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Another United States oil refinery to disappear with Lyondell Houston plant closing

Chemical maker LyondellBasell Industries on Friday detailed its longannounced plan to permanently shutter its 263,776 barrelperday (bpd) Houston oil refinery in the very first quarter of 2025.

The planned closing marks the latest in a wave of U.S. refinery closures as motor fuel demand is anticipated to peak this decade and decrease under pressure from sustainable fuels and electric vehicles.

In January, one of the facility's crude distillation units ( CDU) and coker production train will shut, Lyondell refining primary Kim Foley told experts on a call to go over third-quarter results.

In February, the 2nd CDU-coker production train, which materials the gasoline-producing fluidic catalytic cracker (FCC). and supplementary systems, will shut, ending motor fuel production,. Foley said.

For the fourth quarter of this year, Lyondell prepares to run. the refinery at 90% of its capability.

Lyondell initially planned to shutter the Houston refinery. in 2023, however extended its life due to strong fuel margins. Last. month, rival U.S. refiners Phillips 66 and Valero Energy. announced strategies to close one California refinery and put. 2 others under review for possible closure in that state.

Phillips 66's 139,000-bpd Los Angeles refinery will stop. production by the end of 2025.

The refinery, if you think back historically, was. initially developed to process in-state California crude. production, which has actually declined by about 75%, CEO Mark. Lashier stated.

Valero CEO Lane Riggs stated last month all options are the. table for the company's 91,300-bpd Wilmington and 145,000-bpd. Benicia, California, refineries. New California laws for. maintaining emergency situation inventories would punish operators and. make their refineries unprofitable, Valero stated in a filing with. the U.S. Securities and Exchange Commission.

In the last wave of U.S. refinery closures, which occurred. in between 2017 and 2022, nine crude oil refineries with a combined. capability of 1.2 million bpd were idled or converted to. production of renewable fuels.

(source: Reuters)