Zheng Quan Shi Bao·2026-01-08 18:03Core Viewpoint - The restructuring of China Petroleum & Chemical Corporation (Sinopec) and China Aviation Oil Group (CAOG) is expected to enhance national aviation energy supply security and promote a green low-carbon transition in aviation energy supply, aiming to create a world-class aviation energy supplier [2]. Group 1: Company Overview - Sinopec is the largest refined oil and petrochemical product supplier in China, the world's largest refining company, and the second-largest chemical company, with nine listed companies covering the entire energy industry chain [2]. - CAOG is the largest aviation fuel procurement, transportation, storage, testing, sales, and refueling service provider in Asia, with its subsidiary, China Aviation Oil (Singapore) Corporation, listed on the Singapore Exchange [2]. Group 2: Market Demand and Growth - It is predicted that during the 14th Five-Year Plan period, China's aviation fuel demand will grow at an average annual rate of about 4%, reaching approximately 50 million tons by 2030 and around 75 million tons by 2040 [2]. Group 3: Synergies and Industry Development - The merger is expected to create significant synergies by leveraging integrated refining and aviation fuel supply systems, reducing intermediate links, lowering supply costs, and promoting high-quality development of the industry chain [3]. - The restructuring will enable the two companies to complement each other's strengths, further strengthening and optimizing the aviation fuel industry [3]. Group 4: Green Transition and Sustainable Aviation Fuel - Sinopec is the first company in Asia to have independent research and production technology for bio-jet fuel, with the first domestic bio-jet fuel production facility [3]. - CAOG plays a crucial role in the promotion and application of Sustainable Aviation Fuel (SAF) and ecological construction [3]. - The merger will facilitate the deep integration of both companies' advantages in the SAF sector, promoting high-quality development of the SAF industry [3].