American fuel, minimal reserves… the EU seeks to secure its kerosene supply

The European Union (EU) indicated on Tuesday that it was considering importing alternative kerosene from the United States or requiring European states to build up minimum reserves of kerosene, in order to avoid a shortage linked to the war in the Middle East. The European Commission is due to present a series of measures this Wednesday to tackle the energy crisis.

Brussels will notably create “a new fuel observatory in order to monitor supplies and stock levels. Of course, we will start with kerosene,” indicated European Transport Commissioner Apostolos Tzitzikostas, following a videoconference with the ministers of the Twenty-Seven. Currently, there is no shortage in Europe, insists this official. But concern is growing, as 20% of kerosene consumed by the EU usually transits through the Strait of Hormuz.

The EU calls on the 27 to coordinate

In addition to this observatory, the EU wants to study the degree of flexibility on airport slots and the practice of “fuel tankering”, when companies fly with more fuel than necessary to avoid buying more expensive kerosene at another airport.

In the longer term, “we are working to secure alternative sources of kerosene supply for Europe, for example fuel” of the Jet A type produced in the United States, different from the Jet A-1 distributed in the rest of the world, said the European commissioner. This proposal, however, is unlikely to come to fruition quickly. The Jet A is not currently used in Europe, because it does not meet European standards for very low temperatures, particularly for long-haul flights. An evaluation is underway before making a decision, said Apostolos Tzitzikostas.

The European official also called on the Twenty-Seven to coordinate in the face of the crisis. “Should real supply problems arise, our emergency stocks will need to be used as efficiently as possible. Any national release of fuel must be done in complete transparency, in order to avoid any distortion of the market,” he argued.

“Beyond the current crisis, we must also be prepared to face future shocks. This is why we will assess the need for a minimum kerosene storage obligation, requiring member states to maintain minimum emergency reserves,” he added.

Since the war in the Middle East and the blockage of the Strait of Hormuz, the aviation sector has been shaken by the risk of a shortage of kerosene as summer approaches. Some airlines have already suspended flights due to soaring fuel costs. The general director of the German logistics group DHL, Tobias Meyer, explained this Tuesday to a handful of media including AFP that his company had stocks of kerosene for the months of May and June, but that “what would happen beyond that was difficult to predict”.