The motor caught fire on the Navigator Europa, the coast guard are working together with the Port of Houston and the Houston Fire Department to extinguish the blaze, local TV station ABC13 reported.
Part of the Houston ship channel near the vessel is closed, but no injures were reported, according to Xinhua news agency.
Initial reports indicate the ship was transferring ethylene which is used to control fruit ripening, but there's no word yet on whether the chemical was the source of flames, the coast guard said.
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