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Valero shuts Texas refinery after explosion, sources say

By Thomson Reuters Mar 24, 2026 | 3:55 AM

By Erwin Seba

HOUSTON, March 24 (Reuters) – Valero Energy Corp has shut its 380,000-barrel-per-day (bpd) oil refinery in Port Arthur, ​Texas, following an explosion and ‌fire at a diesel hydrotreater unit, people familiar with the plant operations said on Monday.

The fire has since been extinguished, and a ‌shelter-in-place ​order lifted, according to ⁠the Southeast Texas ⁠Alerting Network.

The cause of the explosion at the 47,000-bpd 243-diesel hydrotreater unit was not clear. The blast could be ​heard as far as 11 miles (18 km) away, the sources said.

In an ⁠emailed response to Reuters, ⁠Valero confirmed a fire in ​a unit at its Port Arthur refinery ​and said all personnel had been ‌accounted for.

Diesel hydrotreaters use hydrogen to remove sulfur from motor fuels during their production to comply with U.S. environmental ⁠rules.

Shutting the refinery was seen as necessary to contain the blaze and the refinery lost ⁠water supply ‌and steam as firefighters worked ⁠to put it out, sources ​said.

Valero’s ‌Port Arthur refinery, the company’s ​largest, is ⁠located 86 miles (139 km) east of Houston.

(Reporting by Erwin Seba in Houston; Ishaan Arora and Swati Verma in Bengaluru; Editing by Sherry Jacob-Phillips, Susan Fenton and ​Bernadette Baum)