On March 23, 2026, Valero Energy Corp. reported an explosion and fire in a diesel hydrotreater unit at its Port Arthur, Texas refinery, the company’s largest facility with a capacity of 435,000 barrels per day. The blast sent a plume of smoke into the air and forced the refinery to shut down operations for the remainder of the day.
Emergency crews and Valero’s own safety teams worked to contain the fire, and Jefferson County officials issued a shelter‑in‑place order for nearby residents. No injuries were reported by Valero, although one independent source mentioned a few minor injuries; Valero’s spokesperson confirmed that all personnel were accounted for.
The shutdown of a 435,000‑bpd refinery is a significant operational disruption that could reduce throughput and tighten regional fuel supplies. The incident comes amid already high gasoline and diesel prices driven by global supply uncertainty linked to the Iran war, adding pressure on an industry already grappling with tight margins.
Valero spokesperson Carol Herbert said, “All personnel have been accounted for. Valero’s emergency response team is coordinating with local authorities. As always, the safety of our workers is our top priority.” The statement underscores the company’s focus on safety and its commitment to restoring operations.
Preliminary investigations point to a malfunction involving an industrial heater unit as the likely cause of the explosion. No evidence of sabotage or external attack has been found, and the Texas Commission on Environmental Quality has deployed air‑monitoring assets that have not detected significant off‑site air quality impacts.
The refinery, commissioned in 1901 and acquired by Valero in 2005, sits adjacent to the Diamond Green Diesel joint‑venture plant. The shelter‑in‑place order was later lifted after monitoring confirmed no health risks, and Valero has not yet released a detailed repair timeline for the damaged hydrotreater unit.
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