Sinopec, China National Aviation Fuel Group Ltd. to conduct restructuring

China has approved the restructuring of China Petrochemical Corporation (Sinopec) and China National Aviation Fuel Group Limited (CNAF), the State-owned Assets Supervision and Administration Commission of the State Council said on Thursday.

Sinopec is world's largest oil refiner and China's top aviation fuel producer, while CNAF is the country's largest state-owned aviation fuel supplier which integrates the purchase, transportation, storage, quality management, sales and into-plane service of aviation fuel.

Industry insiders believe that the restructuring is expected to lower aviation fuel supply costs, boost the industry's competitive edge, and support a green transition in the aviation sector.

Restructuring the state-owned economy is a key step toward building more competitive and sizable state-owned enterprises (SOEs) and capital.

During the 14th Five-Year Plan period (2021-2025), China strategically restructured 10 centrally-administered SOEs into six groups and established nine new central SOEs, effectively enhancing the allocation and operational efficiency of state-owned capital.