Xin Lang Cai Jing·2026-01-08 11:19Core Viewpoint - The restructuring between Sinopec and China Aviation Oil aims to enhance the international competitiveness of China's aviation fuel industry, improve supply resilience, operational efficiency, and facilitate low-carbon transition [1][5]. Industry Integration and Cost Reduction - The merger will effectively integrate Sinopec's large-scale refining capabilities with China Aviation Oil's fuel reserves and terminal refueling network, creating a comprehensive "resource-refining-logistics-airport" supply chain to reduce intermediate steps and ensure energy security for China's aviation sector [6][7]. - The restructuring seeks to address the previously fragmented nature of China's aviation fuel industry, which has lagged behind integrated giants like Shell, by combining Sinopec's strengths in crude oil acquisition and refining with China Aviation Oil's distribution network [2][6]. Promotion of Sustainable Aviation Fuel Development - The merger is expected to significantly advance the sustainable aviation fuel (SAF) sector, which is critical for decarbonizing the aviation industry, recognized as one of the most challenging sectors to reduce emissions [3][8]. - Sinopec has made key breakthroughs in SAF technology and its application in domestic aircraft, while China Aviation Oil plays a crucial role in the downstream aspects of the SAF supply chain, including fuel system adaptation and commercialization [4][8]. - The integration will create a complete industrial loop from "laboratory to wing," accelerating technological iterations, cost optimization, and large-scale market application of SAF, thereby establishing a solid foundation for China's leadership in the global low-carbon aviation transition [4][8].