BAKU, Azerbaijan, Sept.30. In the longer term, the damage to the Nord Stream pipelines will render the imports usable for the foreseeable future, Trend reports via Fitch Solutions.
“Given the current state of relations with the West and our view for a protracted frozen conflict, new investment to repair the lines seems unlikely as reliance on Russian natural gas is set wane as new supply routes evolve and shifts in market share become permanent. While the loss of Nord Stream 1 will limit any supply upside surprise for this upcoming winter, the loss of the imports via these routes had been largely expected over the next several winters,” reads the latest report from Fitch Solutions.
The report reveals that natural gas prices in Europe responded by climbing higher with Dutch TTF front month prices currently 15.3 percent higher than Monday’s closing price, while UK NBP front month prices are up 17 percent.
“Despite no imports coming through the damaged pipelines the risk to near-term gas flows has risen sharply on fears that further sabotage could occur on critical gas import pipelines. In the Baltic Sea this includes the newly inaugurated Baltic Pipeline which opened on Tuesday delivering natural gas between Norway and Poland, and whose route lies just south of Bornholm island.
The Baltic Pipeline has capacity for up to 10bcm of natural gas annually, although the current deliveries will only total 2.4bcm a year based on the current 10-year sales agreement with Equinor, the upstream supplier. The possibility of additional acts of sabotage on critical infrastructure is a growing risk that would raise the risk of tipping the war into a wider regional conflict.”
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