Valero Energy Corp. responded to a fire in a unit at its Port Arthur refinery in Texas on Monday, adding pressure to a US fuels market that’s already seen prices skyrocket due to the Middle East war.
A fire broke out at a diesel hydrotreater, with the unit suffering severe damage, according to people familiar with the incident. The blaze was near the plant’s fluid catalytic cracker, and part of the refinery has been shut down, according to the people, who said a decision hasn’t yet been made whether to shut the entire plant.
A few minor injuries were reported, said the people, who asked not to be named as they’re not authorized to speak to media. A Valero spokesperson said all personnel have been accounted for. Local officials have shut two nearby state highways as a precaution, the spokesperson said.
There were reports of a boom and smoke was seen rising from the plant about 90 miles (145 kilometers) east of Houston, ABC TV affiliate 12News reported.
The refinery can process 435,000 barrels of heavy sour crude a day into gasoline, diesel and jet fuel, according to the company’s website. The accident comes as prices at the pump soar after US and Israeli strikes caused Iran to retaliate by effectively shutting the Strait of Hormuz, disrupting global oil and gas shipments.
Photo: The Valero Port Arthur refinery in Port Arthur, Texas, in 2020. Photographer: Luke Sharrett/Bloomberg
Copyright 2026 Bloomberg.
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