Russia's Novatek halts operations at Ust-Luga complex following drone attack, sources say

MOSCOW, March 27 (Reuters) - Russian energy company Novatek NVTK.MM has suspended gas condensate processing and naphtha export loadings at its Ust-Luga complex following drone attacks causing a fire at the facility, three market sources told Reuters.

Novatek's naphtha export cuts will impact Asian markets, which already faced an unexpected feedstock shortage in March after the U.S.–Iran conflict disrupted Middle East fuel shipments.

The several attacks during this week marked one of the most intense waves of drone strikes on Russia’s western energy corridor. The Baltic ports of Primorsk and Ust-Luga came under repeated fire, with explosions ripping through terminal infrastructure, igniting storage tanks and forcing a suspension of oil and oil product loadings as emergency crews battled huge columns of smoke.

According to the sources, the fire at Novatek's Ust-Luga complex damaged processing units and part of its fuel storage tanks.

The timeframe for repairs will be set after a full assessment of the damage, the sources added.

Novatek did not immediately respond to a request for comment.

The Ust-Luga complex's three processing units, each with a capacity of 3 million tons a year, refine stable gas condensate into light and heavy naphtha, jet fuel, ship fuel oil and gasoil.

In 2025, the complex processed 8.0 million tons of gas condensate, company data show.