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Severe explosions damage Nord Stream pipelines

Swedish and Danish gauging stations massive underwater explosions where the Nord Stream pipeline subsequently started leaking gas.

After the explosions, the Danish military released a video showing a circle of cleared water about one kilometer in diameter. The damage affected both the Nord Stream 1 and Nord Stream 2 pipelines.

This has once again increased gas prices in Europe as it is another negative news for the energy market. We have seen many of these recently in connection with Nord Stream, from problems with turbines or force majeure.

Even though both pipelines were out of service, they are still filled with gas, which is leaking into the sea. For example, Nord Stream 2 has not been officially started up, so it still had a pressure of approximately 105 bar. Now, however, it is only 7 bars on the German side.

Read also: U.S. fuel exports broke records

The operator of the pipeline, Nord Stream AG, 51% owned by Russia’s Gazprom, said.

“The damage that took place on the same day at the same time on three branches of the Nord Stream subsea pipeline system is unprecedented. It is not yet possible to estimate when the gas transportation infrastructure will be restored.”

At the same time, Russia’s Gazprom has announced that it will not be able to pay transit fees for gas shipments through Ukraine to Europe if Russia imposes sanctions on Ukraine’s Naftogaz.

Was this sabotage?

The German side is openly saying that it was orchestrated sabotage. The cause of the explosions is still under investigation, but neither the Danish nor the Russian side is ruling out intentional culpability.

Asked by Russia’s state-run TASS news agency whether the leaks could be the result of sabotage, Russian spokesman Dmitry Peskov said.

“No possibility can be ruled out at the moment.”

The possibility of sabotage has not been ruled out by Danish Prime Minister Mette Frederiksen. She said it was hard to imagine that it was an accident. She said this at the inauguration of the Baltic Pipe pipeline, which will become an important route for transporting gas from Norway to Denmark and Poland, which reports that it already has enough oil and coal for the winter.

Bruno is an Investment enthusiast with several years of experience in the industry. He enjoys following the latest news and technology trends...

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