SINGAPORE (Reuters) -State-owned China National Aviation Fuel Group, the country’s dominant jet fuel distributor, will undergo a restructuring with another conglomerate, its Singapore-listed subsidiary said in a filing.
China Aviation Oil (Singapore), CNAF’s Singapore-based unit in charge of importing jet fuel to China, said in a statement late on Thursday that parent company CNAF “will be undergoing a corporate restructuring with another corporate conglomerate”.
The restructuring remains subject to further procedures and approvals, CAO said, without providing more details.
While China’s demand for gasoline and diesel has been shrinking due to fleet electrification and the use of cheaper natural gas in trucks, aviation fuel demand has seen robust growth from passenger and cargo traffic.
China’s last state-level consolidation in the oil and petrochemicals industry was the 2021 merger of Sinochem Group and China National Chemical Corp, which created the world’s biggest industrial chemicals firm.
(Reporting by Siyi Liu; Writing by Chen Aizhu; Editing by Kim Coghill)
