Gas prices surge after a malfunction on a Norwegian platform.
Production has halted at the Sleipner Riser platform in Norway, with no clear timeline for repairs. This has caused disruptions in deliveries to England, as Norway has become a major supplier for Europe. The stock exchange is growing nervous due to the potential impact on the gas supply system and rising prices.
Currently, gas deliveries between Nyhamna in Norway and Easington in North England have been suspended, causing cuts in the gas supply system and higher prices across Europe. "There are issues with the Sleipner Riser platform," said Randi Viksund, Communications Director for Norwegian pipeline operator Gassco. As a result, the underwater pipeline "Langeled" is currently out of service and needs to be repaired.
There are currently no gas deliveries to Easington, though deliveries to St. Fergus in Scotland are unaffected. On Sunday, 29.7 cubic meters less gas was transported through the pipeline than usual, and it's expected that there will be 56.7 million cubic meters less on Monday.
Since the Russian invasion of Ukraine and subsequent halt in gas supply from Russia, Norway has risen as Europe's most important natural gas supplier. Any interruptions or cuts to major suppliers often result in significant price fluctuations.
The TTF, the reference contract for wholesale gas prices at the NL energy exchange, saw a 13% increase at the start of the week, reaching a yearly high of 38.70 euros per megawatt hour. By noon, the TTF had settled down at 36.38 euros.
The exact date when the pipeline will be up and running again is unknown. "We are working on a plan to fix the damage," said Randi Viksund.
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The Sleipner Riser platform issue in Norway, responsible for supplying natural gas to Europe, has led to halted deliveries to Easington, potentially causing further gas price increases. Given the importance of Norway as a gas supplier since Russia's invasion of Ukraine, any disruptions could significantly impact prices.
