Jet fuel for Germany: in Israel they announced a historic deal, in Berlin they had reservations

For the Ministry of Foreign Affairs, the announced step is part of a series of developments that upgrade Israel’s position in the strategic alliance that has developed between Germany and it in recent decades. Israel not only purchases strategic weapons from Germany, but also sells it air defense systems, ballistic missiles and attack drones; Israeli defense companies are considering purchasing factories of Germany’s faltering automobile industry; cooperation in the field of intelligence helps torpedo terrorism against German citizens, and more.

Foreign Minister Wadpole himself thanked Israel for these steps at the friendly press conference held in Berlin, and said that the security relations between the parties are “in a new phase”.

The news embarrassed the German government

But the description of Israel as an energy powerhouse distributing jet fuel to Europe’s largest economy surprised many. First and foremost, the news embarrassed the German government – which until now had declared that there was no crocin crisis in the country. Transport Minister Patrick Schneider stated in a series of interviews in recent days that in Germany “there is no shortage of jet fuel”, and that the refining capacity of the refineries in Germany and its neighbors for this product is “sufficient”. He referred to these things because the Lufthansa Group canceled tens of thousands of flights in the summer already at the beginning of the conflict, citing an expected shortage of jet fuel.

The Israeli announcement, published in coordination with the Ministry of Energy, indirectly contradicted these words, detailing that “the request from Germany for assistance with jet fuel and natural gas was received in the last few days by the Ministry of Energy and Infrastructure, and Minister Eli Cohen instructed the professionals to make an effort to respond positively.” Israeli officials told Globes that Germany approached a number of countries with which it has trade and energy agreements, and that the Israeli side “raised the gauntlet” and decided to grant the request.

The ones who were still surprised were the German media, who reported the development in the main headlines of their home pages. “Israel supplies jet fuel to Germany,” the headlines announced; “Israel will supply Germany with crosin – even though the government has promised that there are sufficient stocks,” wrote the magazine “Stern”. Some of the media qualified the reports, and wrote that “so far, no confirmation has been received from the German side for the move announced by the Israeli side.”

Also on the Israeli side there were some surprised factors. Experts in the field did not remember the last time Israel exported jet fuel to any country. The refineries in Ashdod and Haifa produce kerosene as part of various fuel refining processes, and sources explained that there may be a certain surplus due to the freezing of many flight routes due to the war, and due to the fact that only Israeli companies – and a handful of foreign companies – fly to and from Israel. However, it is not clear to them how the export will actually take place. The announcement of the Ministry of Foreign Affairs and the Ministry of Energy only states that “the coordination of the loads will be carried out in front of the refineries”.

“Substantial decrease in jet fuel consumption”

In response to Globes’ question, the Ministry of Energy and Infrastructure stated that “the quantities have not yet been decided, and in any case the information is not expected to be published for security and commercial reasons.” Regarding Israel’s ability to transfer jet fuel to Germany, the ministry explained that “the State of Israel has been equipped and prepared for the latest systems with long-term stocks. The refineries are fully operational, and at the same time, in recent months there has been a substantial decrease in the consumption of jet fuel due to the decrease in civil aviation activity.”

After hours of waiting, and following a series of questions from German media, the German Ministry of Energy denied in the wee hours of Tuesday the existence of a jet fuel crisis, contenting themselves with the response that “constructive talks are underway” with Israel and other countries regarding the supply of kerosene.

According to the German newspaper “Die Zeit”, Israel offered help to Germany and any agreements “will have to be signed between the companies active in the field”.

The jet fuel problem bothers many in the world

Around the world, the issue of jet fuel and possible shortages in the near future is clouding airline stocks and worrying many travelers heading into the summer. Analysts predict a possible shortage mainly in Asia.

About 57% of the refined jet fuel usually passes through the Strait of Hormuz, a large part of it on its way to the East. The prices of kerosene jumped even more than the prices of crude oil, among other things due to the double effect of the war – both on the price of a barrel and on the cost of refining. Crosin prices have doubled since the beginning of the war, to a level of about 200 dollars per barrel. The German government has so far said that it will not subsidize jet fuel prices, denying that there is a need to intervene in this market. This, in contrast to the elimination of taxes on fuel and diesel for cars, worth 1.3 billion euros for three months.

In the past, Israel indirectly exported natural gas to Germany, through the liquefaction facilities in Egypt. Part of the natural gas from the reservoirs in Israel’s economic waters passed through pipelines to Egypt, which transported it in LNG tankers to ports and terminals in Germany. However, it was only fractions of a percent of the total consumption of Monzel gas in Germany. Now, due to internal consumption in Egypt, LNG exports to Germany have been stopped.

Israeli officials said following Foreign Minister Saar’s visit to Germany, that the friendship with Germany is “firm” and that the country is helping Israel, among other things, in the fight against anti-Israeli initiatives in the European Union. Germany and Italy – along with other countries – still constitute a “blocking bloc” against proposals to partially suspend the association agreements with Israel, which form the basis of trade relations with the Union.

The fact that we are now also coming out in favor of the Germans in the energy field, as we did in the security field, is evidence of the change in the nature of the relationship, an Israeli source told Globes.