Commodity trading firm Alkagesta has leveraged a Cold War-era pipeline infrastructure to supply jet fuel to European airlines, as reported by The National. The company secured access to the NATO Central European Pipeline System (CEPS) days before the conflict involving Iran began.

Following coordinated US-Israeli air strikes against Iran on February 28 and subsequent retaliatory actions from Tehran, shipping through the Strait of Hormuz ceased. This disruption led to an approximate 80 per cent reduction in jet fuel exports from the Gulf in March, impacting global oil supplies significantly.

According to Asad Huseynov, Alkagesta's managing director of investments and assets, the company underwent a detailed application process to gain entry to the CEPS. This 5,000km network, originally built in the 1950s for military logistics, now predominantly transports jet fuel for both military and commercial aviation.

Mr Huseynov informed The National that Alkagesta has entered into contracts with two holiday airlines. Previously a cargo trader, the company shifted to direct jet fuel supply to airlines in Europe when market conditions presented a new opportunity. The firm sources jet fuel from refinery suppliers in north-west Europe, including Exxon, Vitol, and Petroineos, transporting it via the pipeline to airports such as Brussels and Frankfurt.

For 2026, Alkagesta projects trading 100,000 tonnes of jet fuel. The company anticipates a substantial increase in its annual jet fuel sales. Despite earlier concerns about supply, increased regional refinery output, existing stock drawdowns, and imports from the US and Nigeria have helped stabilise the European jet fuel market, with several major airlines confirming secure supplies for the summer season.

Sources

  1. The National, “How a Cold War relic allowed newcomer to jet fuel market to keep planes flying”, 2026-06-04 — thenationalnews.com
  2. Alkagesta — alkagesta.com