🚨Port Arthur Refinery explodes into flames
An explosion rocked America's 9th largest refinery (cap.: 369k bbls/day) operated by @Valero late Monday afternoon, forcing employee evacuations and shelter-in-place orders for nearby neighborhoods.
Here's what we know:
⚡️The explosion occurred in a 243-Diesel hydrotreater unit capable of producing about 47,000 bpd of the universal commercial transport fuel.
⚡️The refinery remains shut down Tuesday morning pending investigation and inspections.
⚡️Luckily, no major injuries were reported and all personnel are safe, though some of the plant's 770 employees suffered minor injuries.
⚡️The Valero plant specializes in the processing of heavy sour oil into gasoline, Diesel and jet fuel.
⚡️Key to note: The plant has served as the main destination point of Venezuelan crude coming into the U.S. since the deposition of former dictator Nicolas Maduro.
⚡️Until Port Arthur can be reopened, those cargoes will need to be re-routed to other, similarly tooled refineries in Lake Charles, Houston, and Corpus Christi.
⚡️Yet to be determined: This *could* cause further tightening in the Diesel market along with some minor price increases.
Bottom Line: Refinery fires always create catastrophic-looking videos like this one, but few really evolve into catastrophic events.
That's the case here: The Port Arthur Refinery fire will cause some minor displacements as repairs are made, but the market impacts will be small. Give a word of thanks that everyone is safe.
#oil #refining #portarthur #Valero #diesel #gasprice
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