The Lyondell Basell Houston Refinery is visible Thursday, Jan. 18, 2024 in Houston. LyondellBasell is selling its former Houston refinery to Valero for $320.5 million, with plans to restart it by 2027.

Kirk Sides/Staff photographer

Valero agreed to pay $320.5 million for LyondellBasell's former Houston refinery on the Houston Ship Channel, a roughly 700-acre site next to Valero's existing Houston refinery. Valero said it expects to restart 165,000 barrels per day of light sweet crude processing capacity at the site by the end of 2027.

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The deal is expected to close by the end of 2026, pending regulatory approvals and other customary conditions. Valero will also take responsibility for ongoing site operations and environmental, pension and employee-related obligations, according to LyondellBasell.

"This transaction reflects the disciplined approach we are taking to transform our portfolio and create long-term value," LyondellBasell CEO Peter Vanacker said.…