Market history · Energy ·
Nord Stream pipelines are damaged
On 26 and 27 September 2022 leaks were found on the Nord Stream 1 and 2 gas pipelines in the Baltic Sea, off the coasts of Sweden and Denmark. Sabotage was suspected, CNBC and Al Jazeera reported at the time, after seismic events were recorded near the sites. Russian flows through Nord Stream 1 had already stopped earlier in the month.
The damage meant that one of Europe's main routes for Russian gas, the one that had supplied Germany for a decade, could not be restarted quickly. It added to the sense of an energy crisis in Europe that had already driven gas prices to records in August.
It also sharpened governments' focus on protecting undersea cables and pipelines, which carry large shares of the world's energy and data.
The takeaway
Energy and communications infrastructure on the sea floor is hard to defend. Its security is a risk for owners and users alike.
Sources
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.