Alkagesta Secures NATO Pipeline Access for Jet Fuel Supply

Global commodities trader Alkagesta has secured access to the NATO Central European Pipeline System (CEPS), facilitating the supply of jet fuel to key aviation hubs in Northwest Europe. This agreement marks the company's expansion into inland logistics for jet fuel distribution.

The CEPS, NATO's largest petroleum network, spans 5,300 kilometres across Northwest Europe. Established in the late 1950s, its initial purpose was to support the rapid movement of petroleum for military operations. Commercial access to the pipeline is granted to selected companies to efficiently distribute fuel to Europe's leading aviation centres, with commercial activity reportedly accounting for approximately 90% of the pipeline's usage.

Alkagesta will supply a fuel blend that includes a component of Sustainable Aviation Fuel (SAF). This initiative aims to assist airlines in meeting the European Union's target of 2% SAF use by 2025, a mandate for which airlines face potential penalties if not met. The company's deliveries are expected to commence in the spring.

The deal represents a significant development for Alkagesta, which has been active in the commodities and logistics market for less than a decade. The company is recognised as a prominent trader of marine fuels in the Mediterranean and has recently expanded its operations into Singapore.

Access to the CEPS requires a rigorous approval process, including enhanced due diligence, due to the pipeline's strategic importance. This development underscores Alkagesta's operational maturity and its role in European energy logistics.

Alkagesta's CEO, Orkhan Rustamov, noted the importance of securing access to a key part of Europe's fuel distribution network. He highlighted the company's ability to deliver strategic supplies across the continent, including high-quality, sustainable fuel to airlines in Northwest Europe.

This announcement follows recent efforts to enhance the network's capabilities. Poland, for instance, announced a €5.5 billion deal to connect to the pipeline late last year. The urgency to strengthen European energy infrastructure has increased following geopolitical developments in the region.

Related coverage: Geologic Hydrogen Exploration Advances Globally · UK Offshore Carbon Capture Project Begins Construction · Methanol Bunkering Trial Concludes in Kiel · Tri-Fuel Ready Tanker Concept Receives Approval