Jing Ji Ri Bao·2026-01-15 08:27Core Viewpoint - The restructuring of China Petroleum & Chemical Corporation (Sinopec) and China National Aviation Fuel Group (CNAF) marks a significant event in the context of state-owned enterprise (SOE) reforms, aimed at enhancing energy security and seizing opportunities in green transformation amid complex international circumstances [1][2]. Group 1: Impact on Aviation Fuel Industry - The restructuring is expected to enhance the competitiveness of the aviation fuel industry, as aviation kerosene is projected to be the only growth area in China's oil consumption, which is nearing its peak [1][2]. - The merger addresses the historical separation between production and sales in China's aviation fuel sector, improving overall competitiveness against international giants [1][2]. Group 2: Synergistic Advantages - Sinopec, as the largest refined oil and aviation fuel producer in China, complements CNAF's extensive logistics network, creating a complete industry chain from crude oil refining to airport fueling [2][3]. - This integrated model is expected to enhance global bargaining power and risk resilience, positioning the merged entity as a competitive player on the international stage [2][3]. Group 3: Green Transition in Aviation - The restructuring supports the aviation industry's green transition, with Sustainable Aviation Fuel (SAF) recognized as a key pathway for low-carbon development [2][3]. - Sinopec's leadership in SAF technology and production, combined with CNAF's logistics capabilities, facilitates the market entry of SAF, reducing costs and accelerating its adoption [3]. Group 4: Economic Stability and Supply Security - The merger aims to stabilize aviation fuel prices by internalizing transactions and optimizing resource allocation, which could alleviate cost pressures for consumers and airlines [3]. - Strengthening domestic aviation fuel supply capabilities is crucial for ensuring stable operations of civil aviation networks, especially in extreme international situations [3]. Group 5: Challenges and Governance - The success of the merger depends on achieving deep integration between the two large SOEs, which may have differing values and management styles [4]. - Concerns regarding market competition and potential monopolistic practices post-restructuring highlight the need for effective governance and regulatory oversight to ensure fair market participation [4].