Nord Stream Sabotage: Impact on European Gas Prices

Discussion on Nord Stream sabotage, Russian gas loss, German energy prices, and unconfirmed attribution theories.

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Nord Stream Sabotage: The Blow That Changed European Gas

Four simultaneous leaks in a single pipeline system are not an accident. Nord Stream 1 and 2 appeared ruptured in international Baltic waters, and from the outset the debate shifted from technical to geopolitical: who benefits from Europe losing cheap Russian gas and who loses? The short answer: those selling liquefied gas at gold prices win, German industry loses. The long answer is what is being debated.

What is definitely on the table is an uncomfortable fact: the US President publicly promised he would end Nord Stream 2 if Russia invaded Ukraine. The promise was recorded. Months later, the pipelines are out of service. No one has claimed responsibility for the attack, no conclusive evidence has been presented, and hypotheses accumulate without any being closed off.

What is known about the Nord Stream sabotage

Nord Stream 1 was no longer pumping gas to Europe when the leaks occurred. Nord Stream 2 never entered service: Germany blocked it before the invasion. In other words, the sabotage did not cut off an active supply, but eliminated infrastructure that could have been reactivated. This detail completely changes the interpretation of the attack.

The leaks were detected in international waters, not Danish territorial waters, which complicates legal attribution and military response. Some argue that an attack in Danish waters would have been a direct declaration of war; doing so in international waters is a more ambiguous message, harder to respond to without escalating.

The Russian hypothesis points to internal sabotage to blame the West. The Western hypothesis points to Moscow as the author of an exemplary punishment. And a third path, the most uncomfortable one, points to Europe's allies as the authors of the attack. Any of the three is terrifying, and none has been proven.

German electricity prices and missing gas

The economic impact was quickly reflected in markets. The price per megawatt hour in Germany for 2023 exceeded €1,000, a historic high. In just two weeks, the price doubled in the futures market. France also surpassed this cap amid uncertainty over European electricity supply.

This is the data that turns the sabotage into something more than an espionage episode. Europe does not only lose a cheap gas route: it loses the ability to negotiate prices with Russia, Norway or Algeria. Whoever has the gas sets the price. And whoever doesn't have it pays it.

German industry, most dependent on Russian gas, is the first to feel the blow. Plant closures, production relocation and rising energy bills are consequences that will be felt for years, not just one winter.

Who benefits from the Nord Stream sabotage

There is an obvious winner: US liquefied natural gas (LNG), which arrives in Europe via tankers and is sold at prices far higher than Russian piped gas. Every barrel of gas Europe stops buying from Russia is a barrel bought from the US, Qatar or whoever supplies the ship.

The second winner is Ukraine, which sees Europe losing any temptation to buy Russian gas again while the war continues. The sabotage de facto eliminates the option of reopening Nord Stream 2, which was Moscow's main trump card to divide allies.

And the big loser is Europe itself, left without energy maneuvering room and with a bill that will weigh down its competitiveness for the next decade. The question no one fully answers is whether that price is worth the cost of supply security.

European response and allied silence

The European Union described the sabotage as an attack on its critical infrastructure but has not named any responsible party. NATO spoke of an act of sabotage without attribution. And the United States, having promised to end Nord Stream 2, kept silent when the pipes appeared ruptured.

That silence is the most eloquent data point. If the perpetrator were Russia, the Western response would have been immediate and forceful. If the perpetrator is an ally, the response becomes awkward. And if no one knows who it is, the response becomes impossible.

Meanwhile, Europe continues buying gas at market prices, filling storage facilities at a cost passed on to household and business bills. The Nord Stream sabotage was not just an attack on pipes: it was an attack on Europe's capacity to decide its own energy policy.

What might happen next with European gas

The most likely scenario in the short term is that Europe remains dependent on imported LNG, with volatile prices and an energy bill that won't drop while the war in Ukraine continues. Diversification towards Algeria, Norway or Azerbaijan pogre, but does not compensate for the volume provided by Russia.

The most worrying scenario is that the Nord Stream sabotage is the first in a series of attacks on European critical infrastructure: submarine cables, regasification ports, alternative pipelines. If this happens, the European response must be much stronger than a statement.

And the scenario no one wants to name is a direct escalation between powers with Europe as the battlefield. The Nord Stream sabotage was not the end of anything: it was the beginning of a new way of waging war without declaring it.



Who pays the bill for an attack no one has claimed and everyone exploits?

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