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Netherlands-based multinational chemical company LyondellBasell has decided to close its refinery in Houston by the end of next year, Houston FOX affiliate KRIV reported.
According to the station, LyondellBasell has struggled to find a buyer for the 700-acre facility that has constantly switched hands for more than a century.
KRIV reported that Ken Lane, the company's interim CEO, said in a statement that the Fortune 500 company is also departing the refining business.
"After thoroughly analyzing our options, we have determined that exiting the refining business by the end of next year is the best strategic and financial path forward for the company," Lane said. "These decisions are never easy and we understand this has a very real impact on our refinery employees, their families and the community. We are committed to supporting our people through this transition."
Employing approximately 500 workers, the mid-sized refinery is capable of processing 263,000 barrels of crude oil into fuels and petroleum products on a daily basis, per KRIV.
It's also one of the oldest refineries in the city. According to the station, the last time a new refinery was built in the U.S. was almost 50 years ago.
LyondellBasell's announcement comes as gasoline prices skyrocket because of the war in Ukraine, which entered its second month on Sunday (April 24).
According to Houston CBS affiliate KHOU, Lane said that the company's exit furthers its decarbonization goals while the refinery's location will be used for such things as circularity.
Houston oil analyst Andy Lipow told KRIV that LyondellBasell's plans to shutter its facility near the Houston Ship Channel doesn't come as a shock.
"This is the third refinery on the Gulf Coast that is being shut in the last couple of years," he said, per the station.
According to the company, it'll continue to explore other avenues to place the refinery in another operator's hands.