What is the strategic purpose of Sinopec's restructuring of China National Aviation Fuel (CNAF)?

According to the news, Sinopec stated that the restructuring of CNAF aims to 'strengthen China's aviation fuel supply security and support the sector's green and low-carbon transition', while also boosting 'the global competitiveness of China's aviation fuel industry' by integrating the full jet fuel value chain—including production, supply, sales, and trading—to cut transaction costs, improve service capabilities, and overcome the historical fragmentation where 'jet fuel production, sales and refueling operations have been split across different firms, limiting overall competitiveness.'

How does Sinopec project China's jet fuel consumption to change between 2024 and 2040, and what does this indicate about its role in refined oil demand?

Sinopec cited S&P Global forecasts stating that China's jet fuel consumption is 'projected to rise to 75 million tonnes (591 million barrels) by 2040 from 39.28 million tonnes (309 million barrels) in 2024', and described jet fuel as 'a key growth driver in China's refined oil demand mix'—especially as gasoline and diesel demand shrinks due to 'slowing economic growth and the rise of electric cars and trucks', with supply risks and higher oil prices from the Iran war further accelerating the drop in fuel demand.

Sinopec deepens aviation fuel push with CNAF restructuring

Jul 12, 2026

Sinopec completed the restructuring of China National Aviation Fuel (CNAF) to integrate the jet fuel value chain and enhance global competitiveness. The move supports supply security as jet fuel demand is forecast to nearly double by 2040 amidst shrinking gasoline and diesel consumption.

reuters

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