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Sinopec’s Aviation Fuel Surge Ignites Hope Across Asia

Time:2010-12-5 17:23:32  Author:General   Source:Focus  Views:  Comments:0
Summary:**Sinopec’s Aviation Fuel Surge Ignites Hope Across Asia***Introduction* China’s state‑owned oil gi

**Sinopec’s Aviation Fuel Surge Ignites Hope Across Asia**

*Introduction*
China’s state‑owned oil giant Sinopec has reported a sharp uptick in aviation fuel output, a development that is sending ripples of optimism through Asian markets still recovering from pandemic‑era travel slumps. Analysts say the boost reflects both renewed airline confidence and Sinopec’s strategic push to capture a larger share of the region’s jet‑fuel demand.

*Key Developments*
In the first quarter of 2025, Sinopec’s refineries in Shanghai, Guangzhou and Chengdu collectively produced 1.2 million metric tons of aviation kerosene—an 18 % increase over the same period last year. The company attributed the rise to upgraded hydrocracking units, a new blending facility at its Zhanjiang complex, and a series of long‑term supply contracts signed with major carriers such as China Eastern, Singapore Airlines and Japan Airlines. Sinopec also announced a joint venture with a Singapore‑based logistics firm to streamline fuel distribution across Southeast Asian airports, cutting average delivery times by roughly 12 hours.

*Industry Analysis*
The surge comes at a time when Asia‑Pacific air traffic is forecast to regain 92 % of pre‑COVID levels by the end of 2025, according to the International Air Transport Association. Higher fuel availability eases a bottleneck that has forced some airlines to hedge prices or trim flight frequencies. Industry observers note that Sinopec’s move could temper volatile spot prices, which have swung between $85 and $110 per barrel over the past six months. Moreover, the company’s simultaneous rollout of a low‑sulfur, sustainable aviation fuel (SAF) blend—derived from waste oils—aligns with ICAO’s CORSIA
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