Sinopec completes restructuring of China's aviation fuel industry, green aviation fuel industry

Recently, Sinopec announced the completion of the restructuring of China Aviation Oil, and China Aviation Oil has officially become a secondary wholly-owned subsidiary of Sinopec. This is an important measure to promote the strategic and professional reorganization of central enterprises. It is also an initiative to serve the national strategy and respond to international competition. It will improve the ability and level of ensuring the safety of national aviation energy supply, promote the green and low-carbon transformation of aviation energy supply, and better Serve the people's beautiful travel needs.

shows that in China's future refined oil consumption structure, aviation kerosene has become an important growth pole. According to Standard & Poor's forecast, China's aviation oil consumption will increase to 75 million tons in 2040 from 39.28 million tons in 2024. After the reorganization of the two enterprises, the combination of upstream and downstream industries will be realized, and the industrial advantages of Sinopec's refining and chemical integration and regional layout will be further integrated, as well as the advantages of China's aviation oil supply guarantee system covering the whole country, so as to improve the resilience and safety level of the industrial chain supply chain.

companies will also promote the high-quality development of the sustainable aviation fuel industry and enhance the international competitiveness of my country's aviation fuel industry. It will realize the integration of the whole chain of production, supply, marketing and trade in the field of aviation oil, and promote the expansion and optimization of the refining industry chain, reduce transaction costs and improve service capacity.

Hou Qijun, Secretary of the Party Leadership Group and Chairman of Sinopec, said that Sinopec will do a solid job in the reorganization of the "second half of the article" and vigorously promote the implementation of "refinery to wing", "domestic to international", and "traditional aviation fuel to sustainable aviation". "Fuel" layout adjustment, accelerate the pace of transformation and upgrading, improve quality and efficiency, continuously enhance core functions, and enhance core competitiveness.

accelerate the green and low-carbon transformation and promote the high-quality development of the sustainable aviation fuel industry. Compared with traditional energy-using fields, the development of the aviation oil industry faces more stringent requirements for green and low-carbon development,is also a major strategic opportunity.. ICAO and some countries have announced aviation emission reduction targets for 2050 and SAF support policies. According to the International Air Transport Association, global SAF consumption is 6 million tons in 2025 and 18 million tons in 2030. Sinopec is the earliest enterprise with SAF production capacity in China, filling the application gap of domestic SAF in domestic models. China Aviation Oil is the chairman unit of China's SAF industry alliance, deeply involved in SAF application practice, and occupies an important position in the promotion and application of SAF and ecological construction. After the reorganization of the two enterprises, they will integrate the leading advantages of oil R & D technology and market supply of both sides, build SAF technology source, accelerate the construction of industrial chain supply chain and large-scale commercial operation, lead and drive all kinds of upstream and downstream entities to deepen cooperation, build aviation oil industry ecosystem, and better promote the construction of national aviation oil industry science and technology innovation system and green and low-carbon transformation.

Optimize the layout structure and enhance the international competitiveness of China's aviation fuel industry. At present, the larger international aviation fuel service providers are mainly integrated petrochemical companies, such as Shell, BP, ExxonMobil, Total, etc., with large scale, strong oil and infrastructure support capabilities, good reputation, and complete network. Obvious comparative advantages. China's aviation fuel production, sales, filling and other businesses belong to different enterprises, and the overall competitiveness needs to be improved compared with large international aviation fuel service providers. After the reorganization of the two enterprises, they will realize the integration of the whole chain of production, supply, marketing and trade in the field of aviation oil, promote the expansion and optimization of the refining industry chain, reduce transaction costs, improve service capacity, support the construction and high-quality development of world-class enterprises, and enhance the global competitiveness of the aviation oil industry.