Sinopec completes reorganisation of China Aviation Oil
- China Aviation Oil has become a second-level wholly-owned subsidiary of Sinopec after the reorganisation announced on July 10.
- Reorganisation followed strategic deployment at end-2025, a reorganisation conference on January 8, regulatory approvals by June 18 and industrial registration on July 9.
- S&P forecasts China's aviation oil demand rising from 39.28 million tonnes in 2024 to 75 million tonnes by 2040.
- IATA projects global SAF consumption at 6 million tonnes in 2025 and 18 million tonnes by 2030; the reorganisation targets faster SAF industrialisation and supply-chain scale-up.
Reorganisation completed
Sinopec announced the completion of the reorganisation of China Aviation Oil, which now operates as a second‑level wholly‑owned subsidiary of Sinopec. The move followed a strategic deployment at the end of 2025, a reorganisation conference on January 8, regulatory approvals obtained by June 18 and industrial and commercial registration completed on July 9.
Supply security and industrial resilience
Sinopec says the combined group will integrate refining, regional layout and China Aviation Oil’s nationwide supply guarantee system to strengthen the aviation kerosene industry chain, improve resilience of supply and better meet rising aviation demand.
Green transition and SAF scale-up
The company highlights the need to accelerate the shift from traditional aviation fuels to sustainable aviation fuel (SAF). Citing IATA and ICAO targets, the article notes global SAF consumption forecasts of 6 Mt in 2025 and 18 Mt by 2030 and positions the reorganisation as a step to build SAF technology sources and accelerate commercial-scale SAF operations.
International competitiveness and full‑chain integration
The reorganisation aims to achieve full‑chain integration across production, supply, sales and trade to reduce transaction costs, improve service capability and enhance the global competitiveness of China’s aviation fuel industry versus integrated international providers.
Source: Sinopec
