Chemical maker Lyondell Basell Industries is considering a “very large investment” at the site of its Houston refinery after it permanently stops refining crude oil by the end of 2023, CEO Peter Vanacker said in a conference call on July 29.
The investment would be in a technology Lyondell is developing to recycle plastics, Vanacker said during a morning conference call with Wall Street analysts to discuss second-quarter results.
“We are making very good progress on our molecular recycling technology,” Vanacker said. “And this site could be a very good fit for us to do very large investments. Nothing has been decided yet. ...
“But the more we look at it, the more we are inspired ... because we have very good equipment that we eventually could then use.”
Lyondell, which in April announced plans to shutter the refinery in December 2023, has said hydrotreaters at the refinery could be used to upgrade pyrolysis oil made from recycled plastics. Pyrolysis oil is a potential replacement for fossil fuels.
Lyondell plans to shut the refinery because it no longer fits with the company's global chemical production. Vanacker said on July 29 that closing the plant would put the company 40% of the way to its carbon-reduction goal for 2030.
Vanacker, in his first conference call since becoming Lyondell’s CEO in May, offered the answer about repurposing the refinery site to answer questions about possible negotiations with would-be buyers of the facility.
Sources told Reuters on July 28 that the company has turned away at least one possible buyer which has inquired about buying the refinery.
In the second quarter, the refinery provided $418 million in EBITDA, the company said in a filing with the U.S. Securities and Exchange Commission.
The refinery’s returns helped offset losses in Lyondell’s olefins and polyolefin production in European, Asian and international operations.
Recommended Reading
Deep Well Services, CNX Launch JV AutoSep Technologies
2024-04-25 - AutoSep Technologies, a joint venture between Deep Well Services and CNX Resources, will provide automated conventional flowback operations to the oil and gas industry.
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers as the company looks to shed debt for its Equitrans Midstream acquisition.
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.
Sitio Royalties Dives Deeper in D-J with $150MM Acquisition
2024-02-29 - Sitio Royalties is deepening its roots in the D-J Basin with a $150 million acquisition—citing regulatory certainty over future development activity in Colorado.