Valero shuts Texas refinery after explosion, sources say

By Erwin Seba

HOUSTON, March 24 (Reuters) - Valero Energy Corp VLO.N completed the temporary shutdown of its 380,000-barrel-per-day oil refinery in Port Arthur, Texas, on Tuesday following a Monday night explosion and fire in a diesel hydrotreater unit, people familiar with the plant operations said.

No injuries were reported from the explosion in the 47,000-bpd unit 243 diesel hydrotreater, the people said. No date has been set for reopening.

The cause was not known but it was not believed to be a deliberate act aimed at damaging the refinery, the Jefferson County Sheriff's office said.

"No, we're not investigating it as that," said Donta Miller, chief deputy for the sheriff's office, when asked if there was any evidence of a deliberate act aimed at damaging the refinery.

Oil, gasoline and diesel prices have been climbing since the U.S. and Israel launched attacks on Iran.

The blast could be heard as far as 11 miles (18 km) away, the people said.

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

Shutting the refinery was seen as necessary to extinguish the fire, the people said. The refinery lost water supply and steam as firefighters sought to put out the blaze.

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

Port Arthur city officials issued an immediate shelter-in-place order for residents on the west side of the city "to ensure the safety of all residents in the vicinity in light of the recent explosion at the Valero refinery." The shelter-in-place was lifted by 6 a.m. CDT (1100 GMT).

Valero's Port Arthur refinery, the company's largest, is situated 86 miles (138 km) east of Houston.