Yang Shi Wang·2026-01-09 01:55Core Viewpoint - The restructuring of China Petroleum & Chemical Corporation (Sinopec) and China Aviation Oil Group aims to enhance the integration of the aviation fuel industry chain, reduce supply costs, and accelerate the green and low-carbon transformation of aviation energy supply, thereby improving international competitiveness [1][4][8]. Group 1: Industry Growth and Demand - During the 14th Five-Year Plan period, China's aviation fuel demand is expected to grow at an annual rate of approximately 4%, reaching around 50 million tons by 2030 and about 75 million tons by 2040 [3]. Group 2: Innovation and Integration - The merger is expected to facilitate the construction of an innovative system for aviation fuel technology, accelerating the integration of the innovation and industry chains [4][6]. - The restructuring will leverage Sinopec's research and development capabilities in oil products and China Aviation Oil's market supply advantages, promoting the integration of the aviation fuel industry's innovation and supply chains [6]. Group 3: Sustainable Development - The merger will support the high-quality development of sustainable aviation fuel industries and assist the aviation sector in its green and low-carbon transition [8][10]. - Sustainable aviation fuel technology is recognized as a primary route for reducing carbon emissions in the aviation sector, which is one of the most challenging areas for emissions reduction in transportation [8]. - Sinopec is the first company in Asia to have independent research and production capabilities for bio-jet fuel, which will accelerate the research, use, and continuous iteration of sustainable aviation fuel technologies post-restructuring [10][12].