TMN - Natural gas

Natural Gas Erupted on Nord Stream at the Baltic Sea

Natural gas is erupting like geysers above the damaged Nord Stream 1 and 2 pipelines on the surface of the Baltic Sea, according to the Danish military.

On Tuesday, the Danish Defense released a video taken from a military helicopter showing the extent of the damages caused by the leaking pipelines. European officials believe that this is a sabotage from Russian forces.

According to the analysis, the largest disturbance on the Baltic Sea’s surface is spread across over 1,000 meters, while the smallest is approximately 200 meters.

Consequently, Sweden’s Maritime Administration said that the leaks are at a depth of between 70 meters and 80 meters.

The Nord Stream 1 and 2 systems were designed to carry natural gas from Russia to Europe. Each channel consists of two pipelines, giving four in total.

Based on the observations of Danish and Swedish officials, three of the four pipelines are leaking.

Originally, these Russian pipelines supplied 40.00% of Europe’s natural gas before the Ukrainian war. It was contracted to 20.00% in the previous months due to alleged maintenance. Now, all of the supplies have been shut off.

This damage is a further blow to the region as it struggles with an energy crisis ahead of the winter season.

European Natural Gas Price Spiked after the Leaked

Just hours after the news regarding the Nord Stream pipeline’s damage, the price of European natural gas extended its gains, adding to an already volatile market.

Earlier this week, the EU’s benchmark futures soared as much as 22.00%, the most in three weeks.

The Dutch front-month gas ended higher by 7.00% to €186.10 per megawatt-hour. Its UK equivalent surged by 34.00% before closing by 6.20% at 255.65 pence a therm.

Furthermore, the Kremlin-controlled gas giant Gazprom warned its Ukrainian counterpart Naftogaz that new arbitrations over payments might lead to Russian sanctions.

This means that the small amount of natural gas that still flows to northwest Europe from Moscow through Kyiv is now at risk.

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