Key Russian Oil Export Terminal to Operate at Half Capacity After Pipeline Attack

Time to read
1 minute
Read so far

Key Russian Oil Export Terminal to Operate at Half Capacity After Pipeline Attack

Posted in:
0 comments
Ust-Luga oil terminal (© Maximillian cabinet / Shutterstock)
Ust-Luga oil terminal (© Maximillian cabinet / Shutterstock)

Russia's Ust-Luga oil export terminal is set to operate at about half its normal capacity, following recent Ukrainian drone strikes that damaged crucial pipeline infrastructure, two industry sources told Reuters on Thursday.

According to the sources, the terminal, a key hub for Russian energy exports, is expected to handle around 350,000 barrels per day in September, a significant drop from its typical capacity. 

The damage at Ust-Luga follows earlier Ukrainian drone strikes on the Unecha pumping station in Russia's Bryansk region, a vital transit point for crude oil destined for the terminal. The attacks also affected crude oil flows through the Druzhba pipeline, a major artery supplying oil to Belarus, Slovakia, and Hungary. 

Slovakia's state-run refiner, Slovnaft, confirmed on Thursday that initial crude oil supplies through the pipeline had resumed in a test phase, indicating ongoing efforts to restore full service at the critical export terminal.

The operational slowdown at Ust-Luga highlights the growing impact of Ukrainian strikes on Russian energy facilities amid the ongoing Russia-Ukraine war that has dragged on for more than three years.  

While the specific pipeline damaged at Ust-Luga remains unconfirmed, sources say repair crews are working to fix the infrastructure, though there is no clear timeline for a full restoration of capacity.

To mitigate export losses, oil volumes are being diverted to Russia's Primorsk and Novorossiisk ports, which may help to offset some of the shortfall.

According to Reuters, frequent Ukrainian attacks on Russia’s energy facilities are complicating the country's export logistics and could lead to supply disruptions on the global market.

Meanwhile, Russian authorities have not publicly commented on the extent of the damage or the impact on export schedules, with the state-owned pipeline monopoly responsible for operating the country's oil infrastructure, Transneft, yet to publicly comment on the matter.