Jet Fuel Supply & Trading
Jet fuel supply and trading is the core business of CAO. CAO is the largest purchaser of jet fuel in the Asia Pacific region and the key importer of jet fuel into the PRC, accounting for more than 90% of PRC's jet fuel import requirements. CAO supplies jet fuel to the three key international airports in the PRC, namely Beijing Capital International Airport, Shanghai Pudong International Airport and Guangzhou Baiyun International Airport.
CAO delivers exceptional value to our customers through timely deliveries, consistently high quality jet fuel and value-added services. Our jet fuel supply and trading business model enables us to have effective operational control and provides flexibility for our customers and suppliers.
CAO is progressively expanding its geographical footprints by supplying jet fuel to other countries such as Australia and Singapore. We will continue to expand our business in the region whilst consolidating our strong position in the PRC jet fuel supply market.
Trading of Other Oil Products
A key component of CAO's strategy is to expand into the trading of other oil products, with an aim to create synergies with its core business of jet fuel supply and trading. CAO adopts a prudent and cautious approach in developing its oil trading business. We ensure that relevant risk management and control systems are in place before CAO embarks on the trading of a new oil product.
CAO has an experienced trading team, which actively trades in Asia's petrochemicals and fuel oil trading markets.
Oil-related Assets
CAO aims to acquire, develop and control physical infrastructure and assets across the supply chain, such as refineries, tank farms and pipelines.
Shanghai Pudong International Airport Aviation Fuel Supply Company Ltd ("SPIA")
CAO owns a 33% stake in SPIA, the sole supplier of jet fuel for the second largest airport in the PRC – Shanghai Pudong International Airport ("Pudong Airport"). Formed in 1997, SPIA's business includes the procurement, sales, transportation, storage and refuelling of jet fuel. SPIA provides jet fuel sales and refuelling services to more than 80 domestic and foreign airlines operating at Pudong Airport.
SPIA owns and operates all refuelling facilities at Pudong Airport, which include a full suite of hydrant systems, fuel-pumping trucks, fuel pumps, oil storage facilities within the airport and at the jetty, and a 42 km-long pipeline connecting Pudong Airport to Shanghai Waigaoqiao Port.
The other two shareholders of SPIA are Shanghai International Airport Co., Ltd (40%) and Sinopec Assets Management Co. Ltd (27%).
China National Aviation Fuel TSN-PEK Pipeline Transportation Corporation Ltd ("TSN-PEKCL")
TSN-PEKCL is in the business of providing logistics and storage services for the jet fuel requirements of Beijing Capital International Airport ("Beijing Airport) and Tianjin Binhai International Airport ("Tianjin Airport"). TSN-PEKCL's key asset is a 185 km-long multi-oil product pipeline running from Tianjin Nanjiang Port to Beijing Airport, which is the longest multi-oil product pipeline with the largest pipe diameter and the highest transfer volume in the PRC aviation industry. The pipeline supplies about 90% of Beijing Airport's total jet fuel requirements and about 40% of Tianjin Airport's jet fuel requirements.
CAO owns 49% of TSN-PEKCL, with the remaining equity stake held by CAO's parent company, China National Aviation Fuel Group Corporation.
China Aviation Oil Xinyuan Petrochemicals Co. Ltd ("Xinyuan")
Incorporated in 2004, Xinyuan provides storage services and trades in jet fuel and other oil products. Xinyuan owns the Shuidong storage tank farm with a total capacity of 50,000 cubic metres, near the Shuidong harbour in the city of Maoming in Guangdong province, PRC.
CAO owns a 39% equity stake in Xinyuan, with the remaining stake held by Shenzhen Juzhengyuan Petrochemical Co. Ltd (60%) and China National Aviation Fuel Group Corporation (1%).
