In a recent development, media outlets in Finland have reported the discovery of a leak in the undersea gas pipeline, Balticconnector, connecting Finland and Estonia. Finnish daily newspaper Iltalehti, citing government sources, has indicated that the damage is not accidental and officials suspect Russia’s involvement in the attack. Swedish public radio has also reported on the incident, quoting Finnish government sources who confirm that the pipeline has been damaged deliberately.

This incident has caused gas prices to spike, not only in Finland and Estonia but also in the UK. The news of the perceived attack on a pipeline between two NATO member countries has raised concerns about energy security. Additionally, gas prices have surged due to the Israeli government’s request to Chevron to halt operations at its gas field off the coast of Israel for safety reasons.

In the wake of this incident, UK gas prices have risen by 12.7% to 123.2p per therm, reaching their highest level in approximately two weeks. It is worth noting that this incident occurred just over a year after explosions targeted the Nord Stream 1 and 2 pipelines in the Baltic, which transported gas from Russia to Germany.

The Balticconnector pipeline, which commenced operations in 2020, plays a vital role in the exchange of gas between Estonia and Finland, depending on the countries’ energy needs. Both nations have reassured their citizens that their energy security is not compromised despite the potential leak.

According to Finnish daily Iltalehti, an unusual drop in pressure was observed in the Balticconnector pipeline in the early hours of Sunday. Prime Minister Petteri Orpo, addressing a news conference, stated that the leak was likely caused by external action. He emphasised that it is premature to draw conclusions regarding the responsible party. The government is actively investigating the incident, with Finland’s coastguard confirming clear damage to the pipeline.

While Finland’s National Bureau of Investigation is still in the process of verifying whether the damage was intentional or accidental, the economic affairs ministry has cautioned that repairs to the pipeline may take months. This, in turn, could lead to increased gas prices during the upcoming winter season.