UK gas prices rose to their highest since June on fears of pipeline sabotage

Finnish and Estonian officials are investigating a leak in the Balticconnector gas pipeline between the two countries. Photo: MIKKO STIG/AFP

Gas Prices rose to their highest since June after Israel shut down a key field and Finland launched an investigation into potential sabotage of a key pipeline.

UK wholesale petrol prices jumped 14% on Tuesday to more than 125 pence in the thermal period, up from 88 pence on Friday.

This followed a 15% rise on Monday. Prices are now at a four-month high and could close at their highest level since April.

Markets were reacting to gas supply concerns on two fronts, amid concerns about a potential attack on the North Offshore Pipeline and war in Israel .

Officials in Finland and Estonia are investigating a leak on the Balticconnector gas pipeline between the two countries amid fears of sabotage.

Finnish President Sauli Niinisto said the damage appeared to be «the result of external activities» and NATO was negotiating with the country about the violation.

Russia attacked Nord Stream last year. pipelines between Russia and Germany.

Callum McPherson, head of commodities at Investec, said: “It would be a major concern if it meant Europe's entire gas infrastructure was at risk. The North Sea is crossed by pipelines delivering gas from fields and connecting lines between markets.”

At the same time, the escalation of the conflict in Israel following the Hamas terrorist attack on Saturday has raised concerns about the future of gas supplies. from the Middle East.

Israel on Monday ordered Chevron to suspend production at the Tamar gas field, which is within range of Hamas rockets in the Gaza Strip. The Tamar field produces about 1.5% of the world's liquefied natural gas, according to Goldman Sachs.

Concerns are also growing about the nearby Suez Canal, which is the main route for shipping LNG to Europe, Mr. Hansen said . .

Gas remains much cheaper than last year, with wholesale prices topping 600p therm in September last year. However, cold weather in the coming months could trigger a further jump in costs.

Mr McPherson said: “If we have a hard winter then things could start to look like the news we've had in the past year. This is really a big unknown for the gas market.”