Sinopec to Take Over Aviation Fuel Monopoly CNAF in State-Led Merger
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Aviation fuel storage tanks operated by China National Aviation Fuel Group Ltd. at Guangzhou Baiyun Airport on March 26, 2025. Photo: VCG
China is merging its largest oil refiner with its dominant aviation fuel supplier, a major consolidation move in the world’s second-largest jet fuel market.
China Petrochemical Corp, better known as Sinopec Group, will absorb China National Aviation Fuel Group Ltd. (CNAF) in a restructuring approved by the State Council, according to a Thursday announcement by the State-owned Assets Supervision and Administration Commission (SASAC). The statement offered no further details.
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- Sinopec Group will merge with China National Aviation Fuel Group (CNAF), consolidating China’s largest oil refiner and dominant aviation fuel supplier.
- The merger forms a Fortune Global 500 giant as China’s jet fuel consumption rose 13% to 39.3 million tons in 2024; Sinopec’s jet fuel output increased 6.5% while gasoline and diesel fell.
- Supporters cite efficiency gains, but critics warn of reduced competition and risks for private sustainable aviation fuel producers.
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Who’s Who
- China Petrochemical Corp
- China Petrochemical Corp, also known as Sinopec Group, is the world's largest oil refiner. It is merging with China National Aviation Fuel Group Ltd. (CNAF), the dominant aviation fuel supplier in China. This merger, approved by the State Council, aims to consolidate state-owned enterprises and fortify industrial supply chains. The integration gives Sinopec a crucial downstream market and growth channel, especially as demand for traditional fuels slows.
- China National Aviation Fuel Group Ltd.
- China National Aviation Fuel Group Ltd. (CNAF) is Asia's leading aviation fuel provider, controlling over 95% of China's mainland airport aviation fuel storage and supply. It is currently being absorbed by Sinopec Group, China's largest oil refiner, in a restructuring approved by the State Council. This merger will integrate CNAF's downstream infrastructure with Sinopec's refining capabilities.
- China Aviation Oil (Singapore) Corp. Ltd.
- China Aviation Oil (Singapore) Corp. Ltd. is the Singapore-listed unit of China National Aviation Fuel Group Ltd. (CNAF). It revealed in October that its parent company, CNAF, was undergoing restructuring talks. The merger of CNAF with Sinopec Group was widely expected after this announcement.
- China National Petroleum Corp.
- China National Petroleum Corp. (CNPC) is mentioned as one of the suppliers of aviation fuel to China National Aviation Fuel Group Ltd. (CNAF). Critics of the proposed merger between Sinopec and CNAF fear that CNAF's integration into Sinopec could negatively impact competition, as CNAF traditionally sourced fuel from multiple players, including CNPC.
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What Happened When
- 2024：
- China's jet fuel consumption surged to 39.3 million tons, up 13% from the previous year (2023).
- First nine months of 2025：
- Sinopec’s jet fuel output rose 6.5%, while gasoline and diesel production declined by 4.1% and 11.7%, respectively.
- October 2025：
- China Aviation Oil (Singapore) Corp. Ltd., CNAF’s Singapore-listed unit, revealed its parent was in restructuring talks.
- November 2025：
- GL Consulting published a report stating the merger could improve efficiency by aligning production and sales.
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