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Galp does not Expect Jet Fuel Shortages in Portugal

LISBON, April 24 (Reuters) - Portugal's Galp, the country's only refiner and dominant jet fuel supplier, does not expect supply disruptions despite ​concerns raised by some European airlines ahead of the ‌holiday travel season, it said on Friday.

Galp said it supplies around 80% of the jet fuel consumed at Portuguese airports through its ​own production at the Sines refinery, which sources its ​crude mainly from Galp's offshore fields in Brazil.

It also ⁠imports smaller volumes mainly to cover periods of higher ​demand and to comply with mandatory European requirements for the ​use of sustainable aviation fuel.

European airlines have warned that the Iran war could trigger jet fuel shortages, as Europe relies on the Middle East ​for about 75% of its jet fuel imports.

Galp said imports ​in past years were sourced mainly from refineries in Asia and the ‌Middle ⁠East, but it would instead prioritise jet fuel from the United States, West Africa and Europe. These imports will likely be concentrated between May and October, it added.

"At this stage ​and in ​the current context, ⁠no supply disruptions are expected in the coming months, with demand seen fully covered by ​national production at the Sines refinery, adequate ​stock levels ⁠and already contracted jet fuel imports," Galp said in a statement.

Galp said it had rolled out mitigation measures since early ⁠March to ​bolster supply resilience, including daily supply-demand ​monitoring, closer tracking of geopolitical risks, earlier cargo contracting, higher stocks and diversified ​sourcing.

Reporting by Sergio Goncalves; editing by Andrei Khalip, Kirsten Donovan

Source: Reuters


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