Fire at Baltic Gas Terminal blamed on ‘external actions’ by Russian operator

The Russian operator has suspended operations at a major terminal for gas outside St Petersburg following a large fire that broke out. It was caused, according to the Russian operator, by “external actions”.

Novatek, Russia’s second-largest producer of natural gas, announced that it had stopped operations at the Ust-Luga Terminal on the Baltic Sea after the incident. Local officials reported “explosions” in the plant.

Ukraine often hints at its responsibility for strikes on Russian infrastructure and weapons production facilities, but never claims them outright. Recent incidents took place far inside Russia, and not near the frontline of Ukraine. This suggests that Kyiv is able to reach out to its invading forces.

The Ust-Luga attack follows recent drone attacks on an oil terminal near St Petersburg, and another in the Bryansk area bordering eastern Ukraine at a gunpowder producer and oil depot.

Sources familiar with the attacks say they were carried out by Ukraine’s military Intelligence Directorate, GUR, using unmanned aerial vehicles produced in Ukraine. These two incidents in St Petersburg are the first to strike Russia’s second largest city since the beginning of the full-scale invaders of Ukraine nearly two years ago.

Ust-Luga, a key hub in Russia’s export system for energy, includes a large port that ships petroleum products overseas. Novatek converted 7mn tonnes (or a lot) of stable gas condensate to fuel in the complex.

“Tonight there was a fire at production facilities at the Novatek-Ust-Luga production complex. According to preliminary information, the fire was the result of an external action,” the Russian state Ria news agency cited Novatek as saying, adding that a 100 cubic metre cistern was on fire but that the blaze had been “localised”.
In the early morning hours of Sunday, a video was shared on social networks showing workers fleeing a tower of fire. Ria cited local officials who said that two explosions hit the plant.

In a video posted by Baza Telegram, a channel that is believed to be linked to Russian security services, a man is heard saying “A drone is over the base!” In the night sky, a drone can be seen. In another Baza clip, an explosion is seen with the sky becoming orange.

The explosion will not have a significant impact on Russia’s energy trade, since petroleum products are only a small portion of the total. Novatek could suffer more serious consequences from the fire, since Ust-Luga’s production accounts for about 40% of its total sales, domestic and international, according to Novatek data for 2022.

The complex is not able to produce LNG. This has become increasingly important for Russia since it lost the European markets.

In an interview conducted this week, Lieutenant General Kyrylo Budayn, GUR’s chief military intelligence officer, said that his department will continue to launch attacks on Russia and conduct covert operations using commandos in enemy territory.

Leningrad’s governor confirmed that there had been no injuries in the Ust-Luga Fire and that all workers were evacuated.