Sabotage in the Baltic Sea Pipeline leaks drive up gas

Sabotage in the Baltic Sea? Pipeline leaks drive up gas prices

Few believe it to be a coincidence: the two Baltic Sea gas pipelines Nord Stream 1 and Nord Stream 2 reported “unprecedented damage” in a short time – in one day, in three lines. Two leaks were discovered in Nord Stream 1, northeast of the island of Bornholm in the Baltic Sea, which belongs to Denmark and is located off the southern coast of Sweden, and one in Nord Stream 2, southeast of the island. A drop in pressure was detected in both tubes on Monday.

Images from the Danish Navy show bubbles more than a kilometer in diameter forming on the surface of the sea. This has no impact on security of supply, because the controversial Nord Stream 2 pipeline was completed in autumn 2021 but not operational. Gas transport via Nord Stream 1 (in operation since 2011) was restricted by Gazprom after sanctions against Russia and then stopped.

“Infrastructure Targeted Attack”

In Poland, Germany, Russia and Denmark, a targeted attack on European gas infrastructure is considered conceivable. Danish Prime Minister Mette Frederiksen calls a coincidence “hardly possible”. The Kremlin was “extremely worried”. According to Russia, the “absolutely unprecedented situation” needs to be clarified quickly. In return, Ukraine blamed Russia for the leaks.

“We can clearly see that there was an act of sabotage,” said Polish Prime Minister Mateusz Morawiecki. The pipelines are placed in such a way that it is “highly unlikely” that several lines will be damaged at the same time, for example by a ship accident, said Nord Stream spokesman Ulrich Lissek. At night, it was learned that measuring stations in Sweden and Denmark recorded powerful underwater detonations before the gas leaks. According to seismologist Björn Lund, there is no doubt that they were explosions or explosions.

“impulse” in the stock exchanges

Leaks are boosting gas prices: The price of TTF futures contracts – the benchmark for gas prices in the European natural gas market – has recently plummeted, up eight percent from the previous day.

Not only are the authorities in Denmark and Germany investigating the incidents, but also NATO. “We are closely monitoring the situation in the Baltic Sea,” a NATO official said. Crisis teams were called up in Denmark and Sweden on Tuesday. In the event of an attack, only state actors are questioned due to the technical complexity involved.

The new Baltic Pipe pipeline symbolically opened on Tuesday

The new Baltic Pipe pipeline symbolically opened on Tuesday © APA/AFP/STRINGER

New pipeline put into operation

Possibly just a coincidence: in parallel with the search for the cause of the gas leaks, a “diversion” of the existing Europipe II pipeline route opened on Tuesday in Goleniow, Poland, which leads from Norway across the North Sea to Lower Saxony. Norwegian natural gas can be transported east through the new Baltic Pipe. “This day marks a crucial geopolitical step for all of us,” Frederiksen said at the opening of the compressor station. “The era of Russian dominance over gas is coming to an end – an era marked by blackmail, threats and coercion,” said Morawiecki from Poland.

The gas will flow through the €1.6 billion pipeline from October 1. By 2024, 7.5 billion cubic meters of gas are expected to reach Poland this way.