News Highlight
Four leaks have been reported at different points in the Nord Stream pipeline since September 26.
Key Takeaway
- Two leaks were in Swedish waters, while the other two were reported from Danish waters.
The Nord Stream pipelines
- Nord Stream’s twin pipeline transports natural gas from Russia to Europe through the Baltic Sea.
- It consists of two pipelines:
- Nord Stream 1 was completed in 2011 and ran from Vyborg in Leningrad (Russia) to Lubmin near Greifswald, Germany.
- Nord Stream 2, which runs from Ust-Luga in Leningrad to Lubmin, was completed in September 2021.
- It passes across the territorial waterways of Germany, Finland, Sweden, Denmark, and Russia and their respective Exclusive Economic Zones (EEZs).
- The pipeline links to the NEL (North European Pipeline) and OPAL (Baltic Sea Pipeline) in Germany, which are further connected to the European grid.
- According to Gazprom, the cost of the onshore pipelines in Russia and Germany was around €6 billion.
- The offshore section of the project cost €8.8 billion. Thirty per cent of the financing was raised through equity provided by shareholders in proportion to their stakes in the project, while 70 per cent was obtained from external financing by banks
What will be the impact of the leaks?
- It is challenging to restore operations:
- The destruction within one day at three lines of the Nord Stream pipeline system is unprecedented. It’s impossible now to estimate the timeframe for restoring the gas shipment infrastructure operations.
- Interrupt gas supply:
- The pipelines were unlikely to provide any gas to Europe in the forthcoming winter months.
- Gas price hike:
- European gas prices spiked after leaks emerged; European Benchmark prices rose 12%.
- Environmental impact:
- The pipelines are passing on oceans; the leak might adversely impact marine organisms.
Content Source: The Hindu