Several Leaks Found in Nord Stream Pipelines
On September 27, several leaks were found in the Nord Steam 1 and 2 (NS1 and NS2) pipelines in Danish and Swedish territory, Rystad Energy Senior Analyst Fabian Ronningen highlighted in a market note sent to Rigzone late Tuesday.
“The leaks were described as very large, and the operator Nord Steam AG described the damage as ‘unprecedented’,” Ronningen said in the note.
Ronningen outlined that NS1 has not been transporting gas since late August but added that there is still gas in the system to maintain pressure, “causing the large leak of natural gas into the ocean in Swedish and Danish territory”.
“NS1 will not come back to normal operation until at least October 26, the operator said in a statement,” Ronningen stated in the note.
“Since gas has not been flowing through NS1 anyway, the short-term impact on gas prices and fundamentals are expected to be limited, however, the long-term implications are highly uncertain as to when flows will return if they return at all,” Ronningen added.
In a statement posted on its website on Tuesday, Nord Stream AG outlined that the “significant” pressure drop caused by the gas leak on both lines of the gas pipeline leads to a “strong assumption” of “physical damage”.
“Nord Stream AG immediately informed the relevant coast guards about the incident. The positions of two assumed damages have been identified and are located north-east from Bornholm in Swedish and Danish EEZ, respectively,” the company said in the statement.
“Nord Stream AG has started mobilization of all necessary resources for a survey campaign to assess the damages in cooperation exchange with relevant local authorities,” the company added.
In a statement posted on its website on Tuesday, the Danish Defence Command (DDC) revealed that prohibition zones had been established around three gas leaks on the Nord Stream pipelines “for the sake of the safety of ship and air traffic”.
“The defense is supporting in connection with the authorities’ efforts regarding the leaks on the Nord Stream gas pipelines in the Baltic Sea,” the DDC said.
“The frigate Absalon and the pollution control vessel ship Gunnar Thorson are on their way to carry out water monitoring at the exclusion zones, and the Danish Defence are also supporting with a helicopter capacity. In addition, the patrol ship Rota was in the area last night,” the DDC added.
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