By Julia Payne
BRUSSELS, April 17 (Reuters) – The European Union will urge members to cut their dependence on Middle Eastern jet fuel and look into increasing imports from the U.S., in new guidelines expected next week, an official source told Reuters, as the Iran war disrupts global supply.
The plans, previously unreported and still being finalised, will put a greater focus on self-sufficiency and resilience via Sustainable Aviation Fuel (SAF) or synthetic fuels.
European airlines have warned of potential jet fuel shortages within weeks as a result of the Iran war, which could disrupt the summer travel season. Europe is particularly vulnerable as it imports some 30% to 40% of its jet fuel, at least half of that from the Middle East.
The EU’s non-binding recommendations will emphasize the bloc’s limitations in increasing jet fuel output domestically and provide guidance on how to handle potential shortages, the source said.
The person asked not to be named because the discussions are ongoing and the draft is not yet finalized. A European Commission spokesperson confirmed plans to present a response to the energy crisis next week, including measures on jet fuels.
Availability of supply “remains the primary concern,” the Commission spokesperson said, adding that if supply remained snarled through the Strait of Hormuz, the EU could launch a possible coordinated release of jet fuel stocks.
Iran opened the Strait of Hormuz on Friday, a key gateway for energy flows from the Gulf, after a ceasefire accord in Lebanon, though U.S. President Donald Trump said a naval blockade remains in place until a deal is sealed with Tehran.
The EU spokesperson said he hoped a resumption of safe passage through the Strait would last, but reflecting the ongoing uncertainty, added: “Let’s see”.
FLIGHT CANCELLATION THREAT GROWS
Flights in Europe could start to be cancelled from the end of May due to a lack of jet fuel, the International Air Transport Association’s director general Willie Walsh said on Friday. Airlines are cutting flights and grounding some planes.
The source familiar with the EU’s plans said the document would lay out guidance for airline handling issues in the case of fuel shortages such as losing airport slots due to cancellations and the EU’s anti-tankering rule, designed to prevent planes from loading extra fuel in cheap locations.
It will clarify whether a fuel shortage can be considered exceptional enough for airlines to avoid paying compensation for cancellations. The source added that the EU has decided airlines’ calls for changes to or the suspension of the Emissions Trading System (ETS) and SAF allowances were not justified.
The European Commission also plans to introduce EU-wide mapping of refining capacity for oil products and introduce measures “to ensure that existing refining capacity is fully utilised and maintained”, a draft proposal earlier seen by Reuters showed.
EUROPEAN IMPORTS OF U.S., NIGERIAN JET FUEL RISE
They will also look at the distribution logistics of increasing the use of U.S. Jet A fuel, traditionally seldom used in Europe because it has a higher freezing point than the European standard. Europe’s Jet A-1 is better suited to long‑haul, high‑altitude and cold‑temperature operations and is preferred by the military. Jet fuel imports from the U.S. and Nigeria rose sharply in April.
Some of Europe’s key hubs in Belgium, the Netherlands, Switzerland and Germany rely on the NATO-operated CEPS pipeline, which supplies European grade jet fuel. A spokesperson for NATO did not immediately reply to questions about the pipeline’s logistics.
Airlines are preparing for a potential supply crunch, with the International Energy Agency forecasting jet fuel shortages by June if the region can only replace half of the supplies it normally gets from the Middle East.
Some airports have warned of shortages within three weeks if the Strait of Hormuz remains closed to fuel shipments. The European Commission is expected to warn jet fuel supply could remain limited even if the Strait of Hormuz is unblocked.
(Reporting by Julia Payne and Joanna Plucinska; Editing by Adam Jourdan and Elaine Hardcastle)
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