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Missile strike destroys oil terminal in Ukraine, refinery shuts down

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(S&P Global Platts) An oil depot near the Ukrainian capital of Kyiv was set on fire after a missile strike, officials said Feb. 27, a day after one of two Ukrainian refineries was shut down due to military risks.

On Feb. 26, Naftogaz shut down the Shebelinka, or Shebel refinery, one of two operational refineries in Ukraine until “the situation stabilizes.” The plant is Ukraine’s second-largest producer of diesel and gasoline.

The missile hit one of 10 oil tanks of the Vasylkiv oil terminal owned by KLO, which “were almost completely filled.”

All storage supplies of fuel were destroyed in the fire, KLO said.

The missile strike was confirmed by Ukraine’s Ministry of Internal Affairs and the town’s mayor.

“It will burn for a long time. The environmental damage will be enormous,” adviser to the ministry, Anton Gerashchenko, said.

Another explosion hit a natural gas pipeline in Kharkiv, Ukraine’s second-largest city, local media reported.

However, Ukraine ‘s state-owned gas grid operator GTSOU could not confirm the explosion was linked to the Ukrainian gas transit system “due to limited visual access.”

“Our technical measures, including the pressure in the system, are not indicating any major disruption,” the operator said.

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