Military Use of NATO Jet Fuel Pipe Disrupts Commercial Supply

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(Bloomberg) — Deliveries of jet fuel through a key European energy pipeline have been disrupted by military operations — pressuring already squeezed supply chains — according to one commodity trader who uses the system.

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In March and April, extra volumes of military grade jet fuel were put into the NATO Central Europe Pipeline System in Rotterdam, said Orkhan Rustamov, founder and chief executive officer of trading firm Alkagesta. The situation has pushed out some supplies of civilian jet fuel, causing a reduction in deliveries to European airports, including Frankfurt’s main aviation hub, he said.

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The heightened use comes at a time when Europe’s commercial airlines and airports, several of which are directly connected to the pipeline, already face severe fuel supply pressures because the Iran war has choked off a key source of imports. 

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See also: The Jet-Fuel Surge Is Making Global Flight Connections Disappear

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Rustamov’s firm supplies jet fuel into the CEPS, but didn’t deliver through Rotterdam during the period in question. He said he got his information about heightened military-grade deliveries from fellow users. 

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Fernleitungs-Betriebsgesellschaft mbH, service provider for the operation of the German sections of the NATO pipeline systems, didn’t immediately reply to requests for comment. Deutsche Lufthansa AG — a major user of Frankfurt airport — and NATO declined to comment. 

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The Pentagon and the military commands overseeing Europe and the Middle East didn’t immediately respond to requests to do so. Frankfurt airport manager Fraport AG said it does not maintain its own fuel stocks.

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See also (February): Trader Alkagesta to Supply Jet Fuel Via Europe’s NATO Pipeline

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Established during the Cold War, the CEPS has long been authorized for civilian use, on condition that priority is always given to military requirements.

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Today, it’s an integral part of Europe’s energy infrastructure, transporting about 225,000 barrels a day of petroleum product. Its sprawling network of pipes stretches more than 5,000 kilometers (3,100 miles), connecting refineries, depots, military airbases, civilian airports and more. While it mainly handles jet fuel, it can also transport diesel and other fuels.

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Rustamov declined to comment on precisely how much extra military jet fuel was put into the CEPS at the Rotterdam Europoort facility, citing potential security concerns. The amount, however, is equivalent to several days of Italian demand for jet fuel and kerosene, he said.

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While that sort of volume represents only a small portion of the European market, it piles yet more pressure on the continent’s already squeezed supplies.

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The region relies heavily on jet fuel that, in normal times, is shipped through the Strait of Hormuz — the waterway at the mouth of the Persian Gulf through which marine traffic has for weeks been largely halted. Prices in northwest Europe hit a record high earlier this month, and airlines have already canceled some flights.