Valero Refinery Restarts After Explosion

0:00On March 25th, Valero Energy is set to restart its massive 380,000 barrel per day refinery in Port Arthur, Texas this week. The plant shut down on Tuesday after an explosion and fire hit a key diesel processing unit the day before. That unit handles 47,000 barrels a day, and crews blocked its supply lines early Wednesday to put out the flames safely. No one got hurt in the blast, which happened when processed fluids leaked out. People felt the shockwave 11 miles away, right on the Texas Louisiana border. Valero filed a report with regulators confirming the details. This shutdown hits at a time when refining profits are booming. That's thanks to Iran closing the strait of hormones amid regional tensions, cutting off a lot of refined fuel from Middle East plants. Sources say the restart starts with firing of natural gas, safety flares, and boilers to build steam for the utilities. Once 14 other units hit the right temperatures, they'll feed in crude and ramp production back toward full capacity.

1:02Hydra treaters like the damaged one-strip sulfur from fuels to meet clean air rules, so getting everything spec compliant will take a bit. But Valero aims to hit peak output soon and capitalize on those strong margins.