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Second processing unit at Ust-Luga complex resumes production after fire

Reuters

Russian energy company Novatek has resumed gas condensate processing at the second unit of its Ust-Luga complex, which was damaged in an August 24 fire caused by a drone attack, three market sources told Reuters.

The fire led to a full shutdown of operations, including fuel export loadings, one of a number of disruptions to Russia's energy industry as Ukraine steps up drone attacks in the neighbours' ongoing conflict.

One of the three processing units was restarted at full capacity on August 26, while the other two were damaged to varying degrees and taken offline for repairs, forcing the company to reduce naphtha exports and resume shipments of stable gas condensate to international markets.

The sources said that Novatek restarted processing at the second, less damaged unit last weekend. Repairs on the third and most severely damaged unit could last until at least December, traders said.

Novatek did not immediately reply to a request for comment.

According to LSEG shipping data, Novatek's Ust-Luga complex has so far in September loaded cargoes totalling around 180,000 tonnes of naphtha and at least 190,000 tonnes of gas condensate.

The company has also supplied about 70,000 tonnes of gas condensate to the Black Sea port of Novorossiisk.

The Ust-Luga complex's three processing units, each with a capacity of three million tonnes a year, refine stable gas condensate into light and heavy naphtha, jet fuel, ship fuel oil and gasoil.

In January to June 2025, the complex processed 4.2 million tonnes of gas condensate, company data show.

(Reporting by Reuters in Moscow. Editing by Mark Potter)