NATO Pipeline Access Opens Jet Fuel Flow for Trader Alkagesta

Commodity trading firm Alkagesta has moved into direct European aviation fuel distribution after securing access to NATO's Cold War-era infrastructure just ahead of recent supply shocks in the Middle East, according to reporting by The National.

The trader's expansion into downstream aviation supply came as military escalation between Iran, the United States, and Israel effectively halted maritime transit through the Strait of Hormuz. The subsequent disruption removed more than 10 million barrels per day from global crude balances and triggered an estimated 80 per cent drop in Middle Eastern jet fuel exports during March.

Tapping Strategic Infrastructure

To circumvent maritime bottlenecks and supply constraints, Alkagesta gained commercial access to the Central European Pipeline System (CEPS). Built during the 1950s to sustain Western military assets, the 5,000-kilometre logistics network connects major refining assets, storage terminals, and deepwater ports to commercial and defence air hubs across northwestern Europe.

Speaking at an industry gathering in London, Alkagesta's managing director of investments and assets, Asad Huseynov, indicated that the firm completed a rigorous vetting process to secure pipeline capacity. The access allows the former cargo-only trader to inject fuel into various entry points across the continent and deliver product directly to major transport hubs, including Frankfurt and Brussels.

Alkagesta is sourcing its jet fuel from regional refiners in northwestern Europe, including Exxon, Vitol, and Petroineos. From the pipeline terminal points, the company coordinates with local airport tank farms and into-plane refuelling operators to service carrier clients, having already secured delivery agreements with two leisure airlines.

European Supply Resilience

The trading house expects to move roughly 100,000 tonnes of jet fuel this year, with plans to scale its delivery volumes substantially as European flight activity remains resilient despite the broader geopolitical backdrop.

Wider European aviation balances have avoided severe deficits through a combination of increased regional refinery runs, commercial inventory drawdowns, and incremental distillate imports from the United States and Nigeria. Major carriers—including Air France-KLM, Lufthansa, Ryanair, and Jet2—have maintained that fuel procurement remains stable to support scheduled summer flight operations.

Sources

• The National — original report