The fuel loading and gas processing complex at the Ust-Luga port on the Russian Baltic Sea that was damaged in a massive Ukrainian drone attack could take several months to repair, market sources told Reuters on Thursday.
The complex, operated by Russian energy firm Novatek, was hit by a Ukrainian drone strike this weekend. That’s the second time Ukraine has attacked – and damaged – the Ust-Luga port.
Alexander Drozdenko, the Governor of the Leningrad Region in Russia, said on Sunday that at least 10 drones had attacked the port of Ust-Luga, but he said these were all destroyed. However, debris from a drone was reported to have caused a fire at the Novatek terminal.
Several units at Novatek’s complex have been damaged after the fire. Reports have it that all operations at the complex were shut in on Sunday, including loadings of fuel.
One unit of the damaged complex could resume operations within days, but a second unit could take several weeks to repair. Repairs at a separate unit that was most seriously damaged by the attack could take up to six months, according to Reuters’ market sources.
Ust-Luga, one of the key export hubs for Russian crude oil and fuels, has three processing units and refines stable gas condensate into light and heavy naphtha, jet fuel, fuel oil, and gasoil.
Due to the damage at the hub, Novatek could curb its naphtha exports in September and ship more gas condensate instead, according to Reuters estimates and industry sources.
This weekend’s attack on Ust-Luga is the second time this year that Ukraine has hit and damaged the Novatek complex at the port.
In January, the Russian company was forced to suspend operations at the fuel export terminal at the Ust-Luga complex following a drone attack by Ukrainian forces, which caused a fire at one fuel storage tank.
By Charles Kennedy for Oilprice.com
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