China Petroleum has announced the successful completion of its restructuring of China Aviation Oil, which is now a wholly-owned subsidiary. This strategic move is part of a broader effort to enhance the country's aviation fuel supply chain and promote the transition to green energy in the aviation sector.

The restructuring was approved by the State Council and the State-owned Assets Supervision and Administration Commission (SASAC) in late 2025. Following a series of compliance procedures, the restructuring received all necessary regulatory approvals by June 18, 2026, and was officially registered on July 9, marking the completion of the process.

According to data, aviation kerosene is projected to be a significant growth area in China's refined oil consumption. Standard & Poor's forecasts that by 2040, the country's aviation fuel consumption will rise from 39.28 million tons in 2024 to 75 million tons, highlighting the increasing importance of stable aviation fuel supplies.

Post-restructuring, the two companies will leverage their strengths in the upstream and downstream sectors, integrating China Petroleum's refining and regional advantages with China Aviation Oil's nationwide supply assurance capabilities. This collaboration is expected to enhance the resilience and security of the supply chain in the aviation energy sector, ultimately benefiting the public's travel needs.