China’s state-owned refiner Sinopec has completed the restructuring of China National Aviation Fuel (CNAF), the country’s dominant jet fuel distributor, as part of efforts to strengthen aviation fuel supply and improve the industry’s long-term competitiveness, the company announced on July 10.
The restructuring integrates the aviation fuel value chain, bringing together production, supply, sales and trading under a more unified business model. Sinopec said the move will reduce transaction costs, improve operational efficiency and enhance service delivery across the sector.
The company said the overhaul comes as jet fuel is expected to become the main source of growth in China’s refined fuel market, while gasoline and diesel demand continue to decline due to slower economic growth and the rapid adoption of electric vehicles and trucks.
Sinopec also noted that supply risks and higher crude oil prices linked to the Iran conflict have accelerated the fall in demand for traditional transport fuels, increasing the strategic importance of the aviation fuel market.
Citing S&P Global forecasts, the company said China’s jet fuel consumption is expected to increase from 39.28 million tonnes (309 million barrels) in 2024 to about 75 million tonnes (591 million barrels) by 2040, driven by rising air travel demand.
Sinopec said the restructuring aligns China’s aviation fuel industry more closely with major international players, where integrated oil and petrochemical companies typically manage the entire jet fuel business. The company added that the integration will strengthen China’s aviation fuel security while supporting the sector’s transition toward greener and lower-carbon operations.