MOSCOW (Reuters) – Russian energy company Novatek is likely to resume large-scale operations at its Ust-Luga processing complex and Baltic Sea terminal within weeks, after a fire started by what Ukrainian media said was a drone attack, analysts said on Monday.
Novatek said on Sunday it had been forced to suspend some operations at the huge Baltic Sea fuel export terminal and “technological process” at the complex due to the fire.
Kommersant newspaper also said on Monday, citing local authorities, that two storage tanks and a pumping stations were damaged due to the incident.
“We believe the plant is likely to return to significant capacity within weeks or, at worst, months,” analysts at Moscow-based BCS brokerage said in a note.
Novatek declined to comment.
The complex gets gas condensate, a type of light oil, for processing some 7 million metric tons per year from Novaket’s Purovsky plant in Western Siberia for further production of oil products, such as naphtha, jet fuel and gasoil.
Analysts also said that Novatek now will be forced to export more gas condensate instead of high-marginal fuel via other terminals.
Sinara Investbank said a quarter of Novatek’s revenues could be affected due to the incident.
Novatek also exports gas condensate from the Arctic port of Sabetta. The exports grew by around 20% last year to 960,000 tons from 800,000 tons in 2022.
(Reporting by Vladimir Soldatkin; Editing by Alex Richardson)
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