China’s Sinopec has completed the restructuring of China National Aviation Fuel, creating a more integrated aviation-fuel operation as demand for jet fuel rises across the country.
Sinopec, China’s largest refiner by production capacity, said the move would strengthen national aviation-fuel supply security while supporting the industry’s shift towards greener and lower-carbon energy.
China National Aviation Fuel, commonly known as CNAF, is the country’s dominant distributor of jet fuel. The restructuring will bring fuel production, supply, sales, trading and aircraft-refuelling operations into a more closely coordinated business structure.
The deal comes as China’s transport-fuel market undergoes a major transition. Demand for petrol and diesel is declining because of slower economic growth and the rapid adoption of electric cars and commercial vehicles, while aviation activity is expected to support continued growth in jet-fuel consumption.
Recent supply concerns and higher crude-oil prices linked to the Iran conflict have added further pressure to the broader fuel market. Against that backdrop, Sinopec expects aviation fuel to become an increasingly important component of China’s refined-product demand.
Citing projections from S&P Global, the company said Chinese jet-fuel consumption could reach 75 million tonnes, or about 591 million barrels, by 2040. That would represent a substantial increase from 39.28 million tonnes, equivalent to roughly 309 million barrels, consumed in 2024.
Sinopec said the restructuring would also improve the international competitiveness of China’s aviation-fuel industry. Large global suppliers commonly operate as integrated petroleum and petrochemical companies, while China’s production, distribution and refuelling activities have traditionally been divided among different businesses.
According to Sinopec, that fragmented structure increased transaction costs and limited the sector’s ability to compete effectively with international suppliers.
By combining the full aviation-fuel value chain, the restructured operation is expected to lower costs, improve service capabilities and respond more efficiently to changes in airline and airport demand.
The transaction positions Sinopec to capture a greater share of one of the few expanding segments of China’s conventional fuel market while supporting the country’s efforts to maintain reliable aviation-energy supplies and develop lower-carbon alternatives.
