Operations at Russia's Novoshakhtinsky refinery suspended after two drone strikes

Operations at the Novoshakhtinsky refinery in Southern Russia have been suspended after two drone strikes led to a fire and equipment damage, the refinery said in statement June 22.

There has been significant damage to refining and oil storage infrastructure in the region as a result of active fighting since Russia invaded Ukraine Feb. 24.

The refinery said that the first drone strike hit a refining unit, causing a gas leak and explosion and the fire then spread to nearby equipment. The processing unit was put into cold circulation mode and the fire extinguished, it said in a statement.

The second strike hit a crude oil tank farm at the refinery, causing damage to equipment, but no fire.

The investigations were underway to assess the damage and the capability to resume activities at the site as soon as possible, Rostov regional governor Vasily Golubev said in a Telegram post June 22.

The fire had not affected gasoline and diesel supply to consumers in Southern Russia, Russian energy minister Nikolai Shulginov said in a statement posted on the energy ministry's telegram channel.

"The plant was not supplying commercial motor fuel to the domestic market and is currently undergoing modernization. Supplies to consumers in the region continue on schedule," Shulginov said.

The 5.6 million mt/year, or 112,460 b/d, Novoshakhtinsky refinery is owned by Peton Invest Technology.

The plant recently came back online after facing problems shipping out production, sources said previously.

Russian exports of feedstocks have been severely affected by the invasion of Ukraine, as European refiners that used to buy vacuum gasoil and fuel oil for further processing have largely stopped purchases from Russia. Russia has since redirected some exports to Asia, according to sources.