Norway's gas exports to Europe plunged on Monday after a crack discovered in a pipeline at the Sleipner offshore platform forced the shutdown of the Nyhamna onshore processing plant, according to pipeline operator Gassco. The outage sent European gas prices soaring to their highest level this year.

The crack was found in a two-inch pipe on the Sleipner Riser platform, a key connection point for pipelines delivering gas to Britain. The platform, operated by Equinor, began its shutdown late Sunday and was expected to remain closed at least through Tuesday.

"This has significant consequences from a supply perspective," Alfred Hansen, head of pipeline system operations at Gassco, told Reuters. The company is awaiting a more precise estimate from Equinor on repair timelines.

Norway became Europe's top gas supplier in 2022 after Russia's invasion of Ukraine disrupted traditional supply routes. The Sleipner shutdown resulted in a drop in Norwegian gas nominations from 300 million cubic meters (mcm) per day on Friday to 251 mcm on Monday.

While there are options to bypass Sleipner, they are complex and carry additional risks, according to Hansen. Europe's benchmark gas price, the Dutch front-month contract, rose 7.2% by early afternoon trading before retreating slightly from an earlier peak, its highest since December.

Gassco and Equinor are collaborating on repairs and measures to maintain gas deliveries to Europe, officials said. The Nyhamna plant, with a processing capacity of 79.8 mcm per day, is experiencing a real-world loss of 56.7 mcm due to the shutdown. Britain's Easington terminal, connected by the pipelines from Sleipner, has a capacity of 72.50 mcm/day.