Valero to acquire Houston refinery site for $320.5 million

Valero Energy (NYSE:VLO) agreed to acquire LYB Houston Hub Holdings for $320.5 million, adding an approximately 700-acre former refinery facility adjacent to its Houston refinery in Texas.

The transaction involves a purchase price of $320.5 million, subject to closing adjustments, and is expected to close by the end of 2026, pending regulatory approval and other customary conditions.

"This acquisition is a unique opportunity to strategically expand Valero's U.S. Gulf Coast footprint at a fraction of replacement value and enhance the long-term strength of our refining system," said Valero Chairman, Chief Executive Officer and President Lane Riggs.

Valero initially plans to restart 165,000 barrels per day of light sweet crude processing capacity at the acquired facility by the end of 2027, with the acquisition also providing an opportunity for future investment in heavy sour crude processing.

The purchase price is $320.5 million before closing adjustments, while completion remains subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Valero said the acquisition is intended to expand its U.S. Gulf Coast refining operations and create additional crude processing options.