Commercial deliveries through the CEPS network were reportedly pushed out by increased military demand
Increased military use has put strain on the key NATO jet fuel pipeline, the Central Europe Pipeline System (CEPS), disrupting deliveries of commercial supplies, Bloomberg has reported.
The Cold War-era pipeline, which runs through Belgium, France, Germany, Luxembourg, and the Netherlands, has long been certified for civilian use, becoming an important component of the EU market. While the pipeline primarily carries jet fuel, it is also capable of transporting diesel and other petroleum products.
Military deliveries still have priority while moving through the pipeline, and NATO has been actively using it over the past two months, Orkhan Rustamov, CEO of trading company Alkagesta, told Bloomberg on Monday. The increased use reportedly put strain on the system, particularly in Rotterdam, pushing out some civilian jet fuel supplies and reducing deliveries to key European airports, including a major hub in Frankfurt, Germany.
While Rustamov’s company did not deliver fuel through Rotterdam during the period he mentioned, he said he had learned about increased military use from other industry actors. The CEO refused to elaborate on the volumes put into the system by the military, citing potential security concerns, stating only that it equated to several days of Italian demand for jet fuel and kerosene, Bloomberg noted.
While it was not immediately clear what exactly prompted the increased military use of the pipeline, and Rustamov did not speculate on the matter, it came amid the US-Israeli war with Iran.
Apart from flying warplanes to strike targets in the country, the Pentagon has also been actively conducting military cargo flights into the Middle East, according to independent observers. The cargo flights likely brought in additional equipment and personnel even as hostilities waned after Washington and Tehran reached a temporary ceasefire.
The war with Iran has put major strain on global flight connections, with jet fuel prices spiking and prolonged disruptions in the Strait of Hormuz, a strategic route that carries about 20% of global oil. The International Energy Agency has warned of rising market volatility and possible jet fuel shortages within six weeks should disruptions continue. Multiple airlines have announced cuts to their schedules in an effort to contain the damage inflicted by the Middle East crisis.
Read the full article here