UK gas prices soar as Finland says pipeline leak caused by 'external activity'

10 October 2023 , 14:50

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UK gas prices rose sharply after it emerged that Finland believes a leak in the underwater Balticconnector pipeline was caused by 'external activity'. (Image: PA Archive/PA Images)

The UK experienced a surge in gas prices following an announcement from Finland's government that a leak in an underwater pipeline was likely caused by "external activity".

Finnish President Sauli Niinisto revealed that a communications cable had also been damaged. He stated: "The damage to the underwater infrastructure has been taken seriously and the causes investigated since on Sunday," He further suggested that it is "likely" the damage resulted from "external activity", and confirmed he has been in contact with NATO.

Prime Minister Petteri Orpo supported this view, stating that the leak could not have been caused by normal activities. The affected gas pipeline, which began leaking over the weekend, runs between Finland and Estonia, across the Bay of Finland.

Following these reports, UK gas prices rose by 12.7% to 123.2p per therm. The Finnish government has scheduled a press conference for 5.30pm local time (3.30pm BST). Meanwhile, researchers in Estonia reported no seismological activity, which might have indicated an explosion. On Sunday morning, the Balticconnector pipeline in the Gulf of Finland, shared by Finland, Estonia, and Russia, was taken out of service due to the suspected leak.

The pipeline operators reported an unusual drop in pressure around 2am local time. The cause of the potential leak is still under investigation, and they have warned that if a leak is found, it could take several months to repair.

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This incident follows a series of explosions that occurred just over a year ago on the Nord Stream 1 and 2 pipelines in the Baltic, which transport gas from Russia to Germany.

The Balticconnector pipeline, inaugurated in 2020, facilitates the transfer of gas between Estonia and Finland, depending on which country requires it most at any given time. Both nations have assured that their energy security is not compromised due to this potential leak.

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Steve Charnock