Sinopec reportedly in talks to acquire China’s leading jet fuel distributor
Deal discussions are said to be part of a government-backed restructuring plan.
Sinopec Group is said to be in talks to acquire China National Aviation Fuel Group (CNAF), the country’s dominant jet fuel distributor, in a move initiated by the Chinese government.
As reported by Bloomberg, discussions are still underway with no fixed timeline or guarantee of completion. If finalized, the deal would see Sinopec take control of all CNAF’s assets and operations.
Last week, CNAF’s Singapore-based subsidiary responsible for importing jet fuel into China, China Aviation Oil, announced that its parent company would undergo a corporate restructuring involving another state-owned conglomerate.
The potential deal comes as China’s demand for gasoline and diesel continues to decline due to vehicle electrification and the growing use of natural gas in freight transport. In contrast, demand for aviation fuel has surged, driven by strong growth in both passenger and cargo air traffic.
