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

By Erwin Seba

HOUSTON, March 23 (Reuters) - Valero Energy Corp VLO.N 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 explosion at the 47,000-bpd 243-diesel hydrotreater unit rocked the region in east Texas on the Louisiana border, the sources said, with the blast heard as far as 11 miles away.

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.

No injuries were reported from the facility, the sources said.

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

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