Valero shuts Texas refinery after explosion rocks diesel unit, sources say

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 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 away, the sources said.

In an emailed response to Reuters, Valero confirmed a fire in a unit at the company's Port Arthur refinery and said that 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.

City of Port Arthur emergency management officials issued an immediate shelter-in-place order "to ensure the safety of all residents in the vicinity in light of the recent explosion at the Valero refinery."

Shutting the refinery is seen as necessary to contain the fire, which continued to rage nearly five hours after the explosion at roughly 7:30 p.m. CDT on Monday (0030 GMT Tuesday), the sources said. The refinery lost water supply and steam as firefighters sought to put out the blaze.

Valero added that the company's "emergency response team is responding and coordinating with local authorities ... (and) as a precaution, Jefferson County officials have closed State Highways 82 and 87."

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