中国能源报·2026-01-08 14:38Core Viewpoint - The merger between China Petroleum & Chemical Corporation (Sinopec) and China Aviation Oil Group (CAOG) represents a historic collaboration between the world's largest refining company and Asia's largest aviation fuel service provider, aiming to create a more efficient aviation fuel supply chain and support the green transformation of the aviation industry [1][3]. Group 1: Merger Overview - The merger was approved by the State Council on January 8, marking a significant step in integrating the aviation fuel supply chain from crude oil refining to airport fueling [1]. - Sinopec is the leading supplier of aviation kerosene in China, with a production exceeding 26 million tons in 2023, while CAOG dominates the aviation fuel procurement, storage, and distribution across major airports [3]. Group 2: Strategic Implications - The integration aims to eliminate intermediate links, allowing Sinopec's aviation kerosene products to enter the market more efficiently, thus reducing supply costs and enhancing operational efficiency [4]. - The merger aligns with the State-owned Assets Supervision and Administration Commission's directive for state-owned enterprises to focus on their core businesses and achieve resource integration [3]. Group 3: Green Aviation Fuel Focus - The collaboration is not only about current supply chain security but also positions both companies to embrace the future of sustainable aviation fuel (SAF), which is expected to grow significantly in the coming years [5][6]. - The target for blending biofuels in aviation has been raised from 2% to 5%, indicating a strong commitment to reducing carbon emissions in the aviation sector [6]. Group 4: Industry Impact - The merger is expected to reshape the competitive landscape of the aviation fuel market in China, compelling other state-owned and private refining companies to seek new differentiation strategies or collaborative models [10]. - The combined entity will leverage its scale and position to lead the green transformation of the aviation fuel market, emphasizing the importance of resource control and green technology in future energy competition [10].