Houston Ship Channel Petrochemical Complex

Port Houston · Turning Basin to Galveston Bay · Harris County

The Houston Ship Channel runs 52 miles from the Port of Houston Turning Basin through Galveston Bay to the Gulf, lined by more than 200 private terminals, refineries and chemical plants. A 2025 US Army Corps of Engineers report ranked it the top waterway in the US, carrying about 12 percent of the nation's waterborne tonnage.

WATERWAY RANK No. 1 in the US (USACE) SHARE OF US TONNAGE About 12 percent EXXONMOBIL BAYTOWN 564,500 b/d crude PEMEX DEER PARK 312,500 b/d crude CLOSED IN 2025 LyondellBasell Houston US ECONOMIC ACTIVITY $906B a year
Length
52 miles
Terminals
200+ private, eight public
Tonnage
309.5M short tons (2023)
Anchor
ExxonMobil Baytown
County
Harris
Sector
Energy

Overview

The Largest Refining and Petrochemical Complex in the US

The Houston Ship Channel connects the Port of Houston Turning Basin with Galveston Bay and the Gulf of Mexico across Harris County, with plants spilling into Chambers, Galveston and Brazoria counties. Port Houston reported 309.5 million short tons of cargo in 2023, up 5.3 percent from 2022, and a 2025 US Army Corps of Engineers (USACE) report ranked the channel the top waterway in the US. Port Houston credits channel activity with $906B a year in US economic activity and nearly 1.5 million Texas jobs.

Refineries pass naphtha, ethane, propane and hydrogen to olefins and polymer plants on the same channel, while pipelines from the Permian Basin and Eagle Ford deliver crude oil and natural gas liquids (NGLs). ExxonMobil's Baytown site, started by Humble Oil in 1919, is now a 3,400-acre complex with three ethylene crackers rated about 3.6 million tons a year; the newest, an ethane cracker, started in 2018.

Profile
Port operatorPort Houston
RouteTurning Basin to Galveston Bay and the Gulf
Length52 miles
TerminalsMore than 200 private, eight public
CountiesHarris, with Chambers, Galveston and Brazoria
RefinersExxonMobil, Pemex, Valero, Chevron
Chemical operatorsShell, Chevron Phillips, LyondellBasell, Dow, INEOS, Westlake
FeedstockPermian and Eagle Ford crude, gas and NGLs
Oldest siteExxonMobil Baytown, since 1919

Refining

Baytown and Deer Park Lead the Channel Refiners After LyondellBasell's Exit

LyondellBasell shut its 263,776-barrel-a-day Houston refinery in early 2025, removing about 3 percent of Gulf Coast refining capacity, according to the US Energy Information Administration (EIA). Two channel refineries remain in the EIA's national top 15: ExxonMobil Baytown at fifth and Pemex's Deer Park at 14th. Valero's Houston refinery and Chevron's Pasadena refinery, bought from Petrobras in 2019, round out the channel's refiners. Marathon Petroleum's Galveston Bay refinery in Texas City, the second-largest in the US, sits on the bay south of the channel.

Houston-area refineries, EIA crude distillation capacity as of Jan 1, 2026
OperatorSiteBarrels per dayNotes
ExxonMobilBaytown564,500Integrated with olefins and polymers on 3,400 acres
Pemex (Deer Park Refining LP)Deer Park312,500Pemex bought out Shell's stake in 2022
Marathon PetroleumGalveston Bay, Texas City631,000On Galveston Bay, outside the channel
LyondellBasellHouston263,776 (closed)Shut down in the first quarter of 2025

Chemicals and China

Ethylene Plants and Ethane Exports Tie the Channel to China

Chemical plants along the channel include Shell Chemicals at Deer Park, Chevron Phillips Chemical's Cedar Bayou plant in Baytown, LyondellBasell at Channelview, and units run by Dow, INEOS and Westlake, which is headquartered in Houston. ExxonMobil Baytown's crackers feed polyethylene and polypropylene units on site.

Enterprise Products Partners ships ethane from its Morgan's Point terminal on the channel, and about half of US ethane exports go to China, where Satellite Chemical is a major buyer. In late May 2025 the US Commerce Department required export licenses for ethane cargoes bound for China, then rescinded the rule for Enterprise and Energy Transfer on July 2, 2025, under a US-China trade truce.

Constraints

Baytown Hydrogen Paused and Gas Demand Rises

ExxonMobil paused its Baytown low-carbon hydrogen project in November 2025 after failing to secure enough long-term offtake contracts. The plant was designed to make 1 billion cubic feet a day of hydrogen from natural gas and store about 7 million metric tons a year of carbon dioxide underground; ADNOC bought a 35 percent stake in 2024, and partners had spent about $500M. A restart would have to meet the 45V hydrogen tax credit rule that construction start before Jan 1, 2028. See the Texas Green Hydrogen Hub.

Channel crackers draw on the same Permian and Eagle Ford gas that feeds Gulf Coast liquefied natural gas terminals in the Texas LNG Export Hub and the gas-fired behind-the-meter (BTM) power plants planned for Texas data centers.

Record

Dataset Record

Sources
Port Houston, US Army Corps of Engineers, US Energy Information Administration (Refinery Capacity 2026), ExxonMobil, H2 Tech, Energy Capital HTX, Hydrocarbon Processing, Baird Maritime, Enterprise Products Partners
Last verified
October 2026