Report: German insurers renew cover for Nord Stream 1
According to the Reuters news agency, the German insurers Allianz and Munich Re have renewed the protection of the Nord Stream 1 gas pipeline, which was badly damaged after an explosion. Reuters points to five insiders from the insurance and energy trading industries. The insurance policy covers damage to the pipeline and business interruption, it said. This suggests that a repair of the line is not completely impossible despite the massive damage.
Nord Stream 1 runs from Russia through the Baltic Sea to Germany, and 55 billion cubic meters of gas can be transported through the pipelines every year. For eleven years, it was the most important pipeline for Russian gas for European customers until September 2022 when both tubes were destroyed in explosions. The fact that the pipeline is now being insured again stands in contrast to the fact that Germany wants to reduce its dependence on Russian natural gas.
According to Reuters, one of the insiders said that the federal government did not oppose the insurers’ decision. The companies and the Federal Chancellery declined to comment. A spokesman for the Ministry of Commerce said insurance coverage had not been part of the government’s past support for the pipeline.
According to insiders, before the Russian invasion of Ukraine, a number of European insurance companies were involved in securing the pipeline, including Zurich and some participants in the insurance market Lloyd’s of London. One of the insiders said that one of the syndicates from that marketplace continues to provide backing for the pipeline as well. Details were not given. Lloyd’s of London declined to comment, and Zurich did not comment either.