Cyberattack Hits Germany’s Domestic Fuel Distribution System

(Bloomberg) -- Germany's domestic fuel-distribution system was disrupted by a cyberattack -- less than a year after the largest refined petroleum pipeline in the U.S. fell victim to one of the most damaging hacks ever seen the oil market.

Oil trader Mabanaft, which distributes diesel, gasoline and heating oil, declared force majeure on supplies within the country following a Jan. 29 breach that targeted its fuel storage and distribution business. The legal clause covers a company when it can't honor contractual commitments due to events beyond its control.

While the extent of the cyberattack hasn't been disclosed, it highlights the growing risks posed to critical infrastructure. Last year, Colonial Pipeline Co. paid a ransom after a hack forced it to shut the largest fuel pipeline in the U.S., resulting in shortages at filling stations and price spikes.

“All parties continue to work to restore operations to normal in all our terminals as soon as possible,” Mabanaft said. It declined to say whether a ransom is being sought or when it expects the situation to be resolved.

Storage is a key business for Mabanaft, which operates terminals across Germany. 

Its Oiltanking Deutschland operations declared force majeure, a move that's likely to be felt most keenly in locations where there's the least alternative fuel supply. That includes the Hamburg area, which is served by the Holborn refinery, and southwest Germany, which relies of the Miro oil plant.  

Oiltanking Deutschland has terminals on the Rhine River, a conduit for the supply of fuel into southern Germany and Switzerland. Delays are likely if river barges loaded with heating oil or diesel from the Rotterdam trading hub can't discharge into inland terminals. 

Oiltanking Deutschland had a throughput of 18.2 million tons of oils and biofuels through its terminals in 2020, according to its website. That works out at approximately 370,000 barrels a day entering and leaving the depots. German oil consumption was about 2 million barrels a day in 2020, according to BP Plc data.

Shell Plc said it is having to seek alternative supply, with trucks no longer able to load at fuel depots linked to Mabanaft. 

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