Chemical maker LyondellBasell Industries (LYB.N) said on Wednesday that it plans to delay closing of its Houston, Texas, oil refining business to no later than the end of the first quarter in 2025.
The company said last year it would close its 263,776 barrel-per-day Houston Refinery by the end of 2023, its only refinery, due to the cost of needed overhauls after two failed attempts to sell the plant.
Analysts had estimated the facility would require about $1 billion in upgrades to continue operations. LyondellBasell said last month that it plans to run the plant at 95% of capacity this quarter, up from 85% in the first quarter.
A spokesperson said there will be "moderate maintenance spend" required this year and next to keep the plant open.
"Favorable inspections and consistent performance have given the company confidence to continue safe and reliable operations at the Houston site," the company said in a statement.
People familiar with the matter said the company is looking at joint ventures for the property after its ends oil processing at the site.
A plan "is in early stages of development and more details are not available to share at this time," the spokesperson said.
The company is evaluating multiple options for the Houston site including recycling and renewable-based feedstocks and blue and green hydrogen production, the spokesperson said.
