This week, the Nord Stream 1 and 2 gas pipelines linking Russia to Germany under the Baltic Sea were affected by leaks which manifest themselves in spectacular bubbling up to 1 kilometer in diameter. According to the Danish authorities who observed these leaks in the south-east of the island of Bornholm, these gas escapes were preceded byexplosions sous-marines.
In the context of the war in Ukraine, and according to some heads of state, it would be deliberate sabotage. In addition to the security and environmental threat that these leaks represent, the economic risk is also significant. Indeed, with the damage to these conduits which transported Russian gas to Europe, the price of gas, which has already risen sharply since the start of the war, might rise a little more.
The consequences of these leaks were immediate on the price of gas which, thanks to European reserves, had begun to dry up. Although these pipelines no longer transported European gas Since the start of the war, concerns regarding infrastructure security have driven the market.
Thus, these leaks are part of multiple factors that can increase the wholesale price of gas. However, this price is not necessarily linked to that paid by the consumer. According to Adel El Gammal, professor of geopolitics at the ULB, these are “a series of political measures taken at European level, but also at national level” which can have a real influence on these bills.
Among these measures is the gas price cap, an idea supported by Belgium and 14 other countries of the European Union. The 27 energy ministers will meet once more this Friday to discuss solutions to reduce these bills.
