- UK gas prices surge.
- Israeli field closed.
- Finnish pipeline damaged.
According to Finnish Prime Minister Petteri Orpo, “external actions” likely caused the breach in the Balticconnector subsea pipeline.
Gas prices in the United Kingdom have surged to their highest level in six months due to the shutdown of an Israeli gas field and damage to a Finnish gas pipeline.
Unlike oil prices, which dropped below $88 (£71.84) per barrel on Tuesday afternoon, UK gas prices have risen over 12% to nearly 123p per therm (122.96), a level not seen since early April.
A major producer, Chevron, has halted operations at a gas field off the northern coast of Israel.
Monday saw the end of Tamar natural gas production after the energy department requested it. The field supplied gas to Egypt, Jordan, and Israel, where it powered electricity generators.
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Additionally, a breach in the Balticconnector pipeline, which transports gas between Estonia and Finland, has been identified.
Both nations have stated that the damage does not pose a threat to their energy security.
Finnish Prime Minister Petteri Orpo suggests that “external actions” are “likely” responsible for the incident. He said that the Finnish government regularly follows the situation and is early in its probe.
“It is too early to draw conclusions about who or what caused the damage,” he stated.
United Kingdom Prime Minister Rishi Sunak has expressed his readiness to support Finland and Estonia in their investigation. Mr. Sunak posted on X, formerly Twitter, “We are committed to the security of the Baltic Sea as NATO allies and friends.”
At the same time, gas prices and Chevron have come under increased pressure as Australian laborers have resumed strikes at liquefied natural gas terminals, thereby limiting production.
The International Monetary Fund (IMF) suggests that it is premature to assess the economic consequences of the Israel-Hamas conflict due to the price increase resulting from the closure of an Israeli gas field off the coast.
The Washington-based fund has been closely monitoring the situation regarding the economic impact on the region and beyond but believes we must wait a little longer to understand the potential impact.
