Sinopec-branded gantry crane overlooks CNAF oil terminal on an overcast day
China’s energy landscape is undergoing a significant shift as Sinopec, the state-owned oil giant, announced on July 10, 2026, the completion of its strategic restructuring of China National Aviation Fuel (CNAF). This pivotal integration positions Sinopec to dominate China’s burgeoning aviation fuel market and steer the sector towards a greener, more secure future.
CNAF, already the country’s leading jet fuel distributor, will now operate under a consolidated framework that aims to enhance China’s aviation fuel supply security. This move addresses a critical national interest while also facilitating the sector’s transition towards low-carbon operations, aligning with broader environmental and sustainability goals.
The restructuring is a direct response to evolving demand patterns within China’s refined oil market. While an economic slowdown and the rapid adoption of electric vehicles continue to depress demand for gasoline and diesel, aviation fuel consumption is projected to rise significantly. This makes jet fuel a primary growth driver for Sinopec and the national energy strategy.
By integrating the entire value chain, from production to sales and trading—a process previously fragmented across various firms—Sinopec intends to bolster the global competitiveness of China’s aviation fuel industry. This strategic consolidation is backed by robust market forecasts; S&P Global predicts China’s jet fuel consumption will nearly double, surging from 39.28 million tons in 2024 to an estimated 75 million tons by 2040.
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