Valero's Port Arthur refinery faces uncertain timeline for diesel hydrotreater rebuild
Valero Energy Corp. has partially restarted operations at its 380,000-b/d refinery in Port Arthur, Tex., after a late-March explosion and fire at the site, but the timeline for rebuilding the damaged diesel hydrotreater remains uncertain.
As part of its first-quarter 2026 earnings call, executive vice-president and chief operating officer Gary Simmons provided an update on work completed at the refinery since the Mar. 23 fire in the diesel hydrotreater and the subsequent precautionary shutdown.
Simmons said the investigation into the cause of the fire is ongoing, and that “all employees were accounted for” and that “no refinery injuries were reported as a result of the incident.”
Major processing units return
As reported in early April, the smaller crude unit train is up and running, Simmons said, adding that now back online are “the coker, hydrocrackers, the reformer, and a distillate hydrotreater.”
Valero is “currently starting up the larger crude unit as we speak, along with the FCC and alkylation unit,” he said, noting that by May 1, he expects throughput at the Port Arthur refinery to look “fairly normalized.”
The diesel hydrotreater that caught fire and an adjacent kerosene hydrotreater remain offline, Simmons said, “which could negatively impact capture rates some in the second quarter.”
While the kerosene hydrotreater is expected back online by this year’s third quarter, the diesel hydrotreater sustained “extensive damage,” he said, and a timeline for the rebuild is still unknown.
Hydrotreater damage hits second-quarter throughput
The impact of the Port Arthur shutdown is reflected in the company’s throughput guidance for this year’s second quarter.
For the Gulf Coast region, specifically, the company expects refining throughput volumes of 1.69-1.74 million b/d, reflecting reduced rates at Port Arthur.
Valero expects to update its 2026 capital investment guidance after determining a definitive cost estimate and expected repair timeline.
The company had net income attributable to stockholders of $1.3 billion for first-quarter 2026, compared with a net loss of $595 million for first-quarter 2025.
The refining segment reported operating income of $1.8 billion for the quarter, compared with an operating loss of $530 million in the year-ago period. Refining throughput volumes averaged 2.9 million b/d in this year's first quarter.
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Mikaila Adams
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Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was later named Managing Editor - News. Her role has expanded into content strategy. She holds a degree from Texas Tech University.