The Russian Novatek gas plant that was damaged and subsequently caught fire after an alleged Ukrainian drone attack will likely be able to resume normal operations in the next few weeks, Reuters reported on Jan. 22, citing analysts.
Novatek's gas-condensate plant caught fire on Jan. 21 at the port of Ust-Luga in Russia's Leningrad Oblast following a possible coordinated effort by Ukraine to strike key targets deep inside Russian territory, Ukrainian media reported. Ukrainian officials have yet to comment on the alleged attacks that caused explosions and large fires in several Russian cities overnight on Jan. 21.
Novatek said on Jan. 21 that the plant's operations would be halted.
Novatek is the largest independent natural gas producer in Russia. The plant in Ust-Luga processes stable gas condensate - a byproduct of natural gas - into naphtha while also exporting oil products to international markets.
The attack raised concerns that a disruption in the supply of naphtha could exacerbate a situation already complicated by the attacks from Houthi rebels on shipping routes in the Red Sea and Gulf of Aden.
Even if the plant resumes operations within the next few weeks, the Russian Sinara Investbank said that as much as a quarter of Novatek's revenues could be affected by the attack.
Novatek did not comment on the predicted reopening time or the estimated economic impact, Reuters said.