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LyondellBasell plans to close its Houston refinery
Posted on 4/21/22 at 7:58 pm
Posted on 4/21/22 at 7:58 pm
quote:
LyondellBasell, the multinational chemical company with headquarters in Houston, plans to close its Houston refinery and exit the refining industry, it said Thursday.
Employees of the refinery — one of the largest in the U.S. — were informed Thursday of the company’s plans to close the facility, the Netherlands-incorporated company said in a filing with the Securities and Exchange Commission. It plans to close the plant by by Dec. 31 of next year.
The company announced in September it was considering selling the plant after scrapping plans to offload it in 2017. Lyondell will "continue to consider potential transactions and alternatives for the site," it said Thursday in a statement.
quote:
Around 550 people work at the Houston Refinery, which is one of the largest in the United States. It is capable of refining 268,000 barrels of oil per day of crude into transportation fuels such as reformulated gasoline, diesel and jet fuel, as well as products like lubricants and petroleum coke.
The closure would be the latest in a series of major refineries to shutter since the start of the pandemic, which forced refiners to reckon with mounting costs and declining future prospects for gasoline as the energy transition accelerated. Refinery closings have stripped 1 million barrels per day from the U.S. market since January 2020, pushing remaining refineries to stretch to meet soaring demand as Russian supply slides from the global market.
To be sure, the Houston refinery — the only refinery in LyondellBasell's global portfolio of chemical and plastics plants — has long been a burden for the company. It has reported losses on its refining operations there since at least 2016, when it first put it on the market. It reported a $696 million operating loss on the refinery in 2021, compared to a $1 billion loss in 2020.
quote:
LyondellBasell has considered selling the Houston Refinery, which sits on 700 acres on the Houston Ship Channel, since at least 2015, when plunging gasoline prices weakened profit margins. In September, analysts at Tudor, Pickering, Holt & Co. valued it at $500 million to $800 million.
LINK
This post was edited on 4/21/22 at 7:59 pm
14
Posted on 4/21/22 at 8:00 pm to Dire Wolf
That should help the low gas inventory
Posted on 4/21/22 at 8:04 pm to Dire Wolf
quote:
future prospects for gasoline as the energy transition accelerated.
How did the energy transition "accelerate" exactly? We're in the exact same spot we were 5 years ago. Democrats can't dream a solution into existence and $60k electric vehicles doesn't solve anything either. Maybe if their activists had got STEM degrees instead of social justice degrees. Wanting a transition and pressuring a transition doesn't change the very real energy demands that will still remain.
This post was edited on 4/21/22 at 8:09 pm
Posted on 4/21/22 at 8:09 pm to fightin tigers
good, maybe yall will stop moving here
Posted on 4/21/22 at 8:14 pm to Dire Wolf
Thats weird. I thought businesses only closed in Louisiana.
Posted on 4/21/22 at 8:14 pm to Dire Wolf
There goes type theory that O&G corporations are just taking it in right now across the board.
This just the tells me there are stronger headwinds than the momentary market reaction right now.
This just the tells me there are stronger headwinds than the momentary market reaction right now.
Posted on 4/21/22 at 8:21 pm to Athanatos
quote:
Thats weird. I thought businesses only closed in Louisiana.
The OT has a magical way of ignoring crime, businesses closing, and negative news about places outside of Louisiana.
Posted on 4/21/22 at 8:36 pm to Dire Wolf
Truck nut futures plummeted today.
Posted on 4/21/22 at 8:51 pm to billjamin
Some hedge fund is waiting for the sale price for the lost refining capacity to fall far enough to buy for a deal
Posted on 4/21/22 at 8:54 pm to Dire Wolf
It's a piece of shite
Posted on 4/21/22 at 8:58 pm to Dire Wolf
Maybe if their engineers and QC inspectors weren’t such dickheads contractors wouldn’t screw their eyes out on jobs and they could have been more profitable?
Posted on 4/21/22 at 9:01 pm to JusTrollin
They are notoriously difficult to deal with on the business side as well, especially with procurement. Their entire way of doing things is arse backwards
Posted on 4/21/22 at 9:12 pm to tiggerthetooth
quote:
Democrats can't dream a solution into existence and $60k electric vehicles doesn't solve anything either.
Electric vehicles don't solve anything regardless of price. We don't have a solution to charge them on a mass scale.
Posted on 4/21/22 at 9:45 pm to Strannix
It's an old plant. I remember being shown valve body castings with swastikas on them because they were sourced in the 30s from Germany.
Posted on 4/21/22 at 9:54 pm to Strannix
quote:
it's a piece of shite
Yep.
It's a legacy CITGO refinery.
Old AF. Not well maintained at all.
They've openly been shopping it for several years. Even pre pandemic.
Posted on 4/21/22 at 10:02 pm to Cajun Ag
quote:
It's an old plant. I remember being shown valve body castings with swastikas on them because they were sourced in the 30s from Germany.
I can remember visiting the Motiva Port Arthur facility a few years back and they had recently dug up a literal wood pipe
This post was edited on 4/21/22 at 10:14 pm
Posted on 4/21/22 at 10:03 pm to TulaneUVA
quote:
There goes type theory that O&G corporations are just taking it in right now across the board.
The idea that expensive gas = refineries making bank is silly in the first place, and generally a good indication that someone has no clue how the energy market works.
Upstream oil & gas companies kind of are raking in profits right now. But they’ve been getting their asses kicked for 7+ years so it’s all relative.
Refineries make money on the crack spread and whatever small advantages they can drum up over their peers. It’s an extremely competitive industry and margins are not as high as people seem to think. There are definitely winners and losers.. and Lyondell is a loser in that market.
Posted on 4/21/22 at 10:06 pm to Dire Wolf
Should be a cheap pickup for someone.
They'll take less instead of shuddering it and watching it rust
They'll take less instead of shuddering it and watching it rust
Posted on 4/21/22 at 10:47 pm to Ed Osteen
quote:
They are notoriously difficult to deal with on the business side as well, especially with procurement. Their entire way of doing things is arse backwards
Some of their language is nuts.
This post was edited on 4/22/22 at 12:03 pm
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