Novatek to reduce naphtha exports due to fire at Ust-Luga complex
Russian energy company Novatek will reduce naphtha exports and could resume shipments of stable gas condensate to international markets due to a fire at its complex in the Baltic port of Ust-Luga, four market sources said on Monday.
Debris from a destroyed Ukrainian drone caused a fire at Novatek's Ust-Luga terminal early on August 24, the regional governor said on his Telegram channel.
According to the market sources, the operations at the complex were fully shut on Sunday. While the full impact is as yet unknown, at least one processing unit was damaged by the fire, two sources said. Two other sources said the fire damaged two processing units.
Novatek did not immediately reply to a request to comment.
The Ust-Luga complex has three processing units with a capacity of 3 metric MMtpy each and refines stable gas condensate into light and heavy naphtha, jet fuel, ship fuel component (fuel oil) and gasoil.
The complex also allows for transshipment of stable gas condensate to the export markets. If processing capacity is reduced, more gas condensate would be available for export.
In January to June 2025, the complex processed 4.2 MMt of gas condensate, company data showed. In 2025, Novatek exported an average of about 420,000 tonnes of naphtha a month from Ust-Luga port to Asian countries - Singapore, Malaysia, Taiwan and China - according to LSEG data.
In January 2024, a fire also occurred at Novatek's terminal in Ust-Luga as a result of two explosions due to "external impact", and the operation of the splitters was stopped. The company resumed condensate processing at the complex on February 11, 2024.
Comments