UPDATE 1-Valero: Port Arthur refinery at 60 pct of capacity

(Adds details, background, changes dateline to Houston, previous New York)

HOUSTON, Nov 9 (Reuters) - Independent refiner Valero Energy Corp (VLO.N) said Friday crude oil processing rates at its 325,000 barrels per day (bpd) Port Arthur, Texas, refinery were 185,000 bpd -- 60 percent of capacity -- and were set to increase over the next few days.

The refinery suffered a Thursday morning power failure that shut units on the plants's north side and led to a fire that damaged a diesel hydrotreater.

The hydrotreater remains offline. Valero said a second hydrotreater was operating at higher than normal rates to curb the loss in diesel output.

About the fire-damaged hydrotreater Valero said it cannot "speculate at this time how long this outage will last."

On Thursday, sources familiar with refinery operations said a heater in the hydrotreater, where the fire was located, was heavily damaged and could take between two and four weeks to repair.

One worker was taken to a hospital for treatment of anxiety on Thursday after the fire broke out. No injuries were reported and all workers in the refinery were accounted for. (Reporting by Robert Campbell in New York and Erwin Seba in Houston; Editing by Christian Wiessner)