Nord Stream 1 shutdown ‘likely to see gas prices skyrocket again today’

Analysts predict that gas prices will jump 50% as a result of Russia’s move to cut off gas flows

Gas prices are likely to rise as much as 50% today due to Russia’s decision to halt gas flows through the Nord Stream 1 pipeline.

On Friday, Gazprom, the Russian state-controlled gas company that runs the pipeline said that it had found an oil leak in a gas turbine.

The energy giant did not indicate when the supply would start again.

Although Britain is not reliant on Nord Stream 1 gas flows, the suspension of operations is forecast to drive the wholesale cost up, which in turn impacts UK energy bills.

At the weekend, German Chancellor Olaf Scholz pledged it would invest €65 billion (£56bn) in easing the burden of high energy prices on households and businesses.

Phil Hewitt, Director of EnAppSys, told ELN: “Gas prices have opened up 25% higher today in reaction to the news about Nordstream 1.

“If Nordstream 1 does not come back on stream, you can expect higher prices for consumers in the New Year when the next price cap is announced.”

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