On July 10, 2026, China Petroleum & Chemical Corporation (Sinopec) announced the completion of its restructuring of China National Aviation Fuel Group (CNAF), with CNAF officially becoming a wholly-owned secondary subsidiary of Sinopec . This marks a major milestone in the strategic consolidation of central state-owned enterprises (SOEs) in China.

Regulatory Approval Process

The restructuring plan was approved by the State Council and the State-owned Assets Supervision and Administration Commission (SASAC) in late 2025 . In January 2026, SASAC held a reorganization conference to outline requirements for the integration . The deal received all domestic and overseas regulatory approvals on June 18, 2026, and the industrial and commercial registration change was completed on July 9, 2026, officially concluding the restructuring process .

Strategic Rationale

The merger creates a vertically integrated giant combining Sinopec's massive refining capacity — the company is the world's largest oil refiner and China's top aviation fuel producer — with CNAF's nationwide airport supply network, which controls fueling facilities at over 95% of China's airports . Industry experts believe this integration will lower aviation fuel supply costs, boost global competitiveness, and accelerate the green transition of the aviation sector .

Market Context

China's aviation fuel demand is projected to surge from approximately 39 million metric tons in 2024 to 75 million tons by 2040, making jet fuel the sole growth engine in China's refined oil consumption structure as other fuel demand declines . The restructuring responds to this demand by establishing a "refinery-to-wing" supply chain .

Sustainable Aviation Fuel Development

The reorganization also aims to advance sustainable aviation fuel (SAF) development. Sinopec is China's first SAF producer, while CNAF serves as chairman of China's SAF Industry Alliance. Their combined capabilities are expected to accelerate SAF commercial production and build an industry ecosystem for green aviation .

Future Vision

Sinopec Chairman Hou Qijun stated that the company will focus on three strategic transformations: "refinery to wing," "domestic to international," and "conventional aviation fuel to sustainable aviation fuel," with the goal of becoming a world-class aviation energy supplier .