CNAF Increases Engagement in Belt and Road Initiative

In April this year, in Angkor, Siem Reap, Cambodia, the representative office set up by China National Aviation Fuel Group Limited (CNAF) began operations. The Siem Reap International Airport project is a key undertaking for Sino-Cambodian cooperation in international production capacity.

Its fuel supply system will be invested, designed, built, operated and managed by CNAF, which is responsible for the whole-chain service of airport fuel supply. This is the first overseas whole value chain project of CNAF under the Belt and Road Initiative.

Construction of the first full-chain aviation fuel project along the Belt and Road

From April 25 to 27, the second Belt and Road Forum for International Cooperation was held in Beijing. 

The Belt and Road Initiative is an open, pluralistic and win-win road to civilization. The BRI has sent a positive signal to the outside world to strengthen international economic cooperation, promote world economic growth and build an open world economy. 

It has brought enormous opportunities for the common development of China and countries along the Belt and Road. 

A representative of CNAF said that CNAF will translate the initiative into corporate actions, actively accelerate the promotion of key businesses in countries involved in BRI, establish branches in Southeast Asia, South Asia, Europe, Africa and other places, and elevate its level and its breadth of operations, expanding and optimizing its network.

The aviation fuel supply project at Siem Reap International Airport in Angkor, Cambodia is expected to start construction in 2019 and be completed and put into operation in 2022. 

As an important airport facility and transport hub project in Southeast Asia, Siem Reap International Airport will have the best prospects for development, the highest standards, the biggest area, and the largest passenger throughput of any airport in Cambodia.

The Siem Reap International Airport fuel supply project is the first fuel supply main business and industry investment project along the Belt and Road. It is the first overseas whole value chain project integrating standards, investment, design, construction, operation and management.

CNAF has conducted in-depth investigation and research on the aviation fuel market, as well as fuel supply and transportation plans in Southeast Asia and Cambodia, storage facilities at Sihanoukville Port, and the progress of the construction of Siem Reap International Airport.

It has established a working mechanism, improved supporting facilities, strictly abided by international rules, local laws and regulations, and made every effort to speed up the implementation of the project in a smooth way.

Recently, CNAF also reached an agreement and signed a memorandum of understanding with Thailand's largest state-controlled energy company, PTT Public Company Limited, on jointly participating in the fuel supply project for Cambodia's new airport in Phnom Penh. 

It is agreed that both parties will participate in the bidding for the fuel supply project of Phnom Penh's new airport and establish a joint venture company to provide aviation fuel storage, testing, supply and filling services for that facility.

Promoting Chinese standards, management, technology and equipment to the world

At present, Chinese enterprises "going global" is not only limited to construction activities, implementation of high level Chinese standards, management, products, equipment, and technology, but is also welcomed by countries along the Belt and Road.

In 2018, CNAF and the Civil Aviation Authority of Mongolia signed a memorandum of understanding to promote cooperation in aviation fuel supply, airport facilities and equipment, and management standards export, which for the first time achieved domestic tank refueling with branded fuels imported from China.

CNAF has also signed overseas sale agency agreements with relevant entities inside China's civil aviation system to carry out an export agency business supplying a full range of civil aviation fuel products. 

In the Angkor airport project in Siem Reap, with the adoption of Chinese products, technologies and standards, an integration of investment, construction and operation has been achieved thanks to CNAF's effort to make the project a fine and solid model and benchmark for the construction of fuel supply infrastructure for overseas airports.

CNAF released a China Jet Fuel Consumption Index last year that provides China's first systematic statistical analysis of domestic aviation fuel consumption and prices, and steps up efforts to promote China's standards to go global.

The first export of China's own brands of fuel for domestic tanks in Mongolia. [Photo/sasac.gov.cn]

CNAF releases China Jet Fuel Consumption Index. [Photo/sasac.gov.cn]

Accelerating implementation of international development strategy

To accelerate implementation of its internationalization strategy, in 2016 CNAF formulated an international business development plan of the 13th Five-Year Plan(2016-2020), making in-depth arrangements for the global market.

As mentioned, CNAF supplies aviation fuel with integrated procurement, transportation, storage, testing, sales and refilling of aviation fuel products. It has established a complete aviation fuel and refined oil sales network and a complete fuel product logistics and distribution system.

In 2018, it completed the sales of 61.06 million tons of oil products, including 29.29 million tons of aviation fuel, 3.87 million tons of petroleum commodities and 27.91 million tons in volume in international trade. For the eighth consecutive year since 2011, it has been listed as a Fortune Global 500 company.  

CNAF aviation fuel supply facilities in China [Photo/sasac.gov.cn]

As China's national aviation fuel supplier, CNAF's aviation fuel supply business now covers 57 overseas airports, and provides aviation fuel filling services to more than 300 aviation customers worldwide, including 16 airports in countries along the Belt and Road and 20 countries on four continents.

In the more than 20 year process of internationalization, CNAF also established a joint venture with BP plc to establish Shenzhen Chengyuan Aviation Oil Co., Ltd., established Tianjin International Petroleum Storage and Transportation Company Limited with Shell, created a company in North America to explore markets in developed countries, set up a Middle East office to participate in construction in countries along the Belt and Road in Eastern Europe, Asia, Africa and other countries, and undertook a bio-aviation fuel filling business in the North American market.

During the China International Import Expo last year, CNAF and Beta from the USA signed a memorandum of cooperation to jointly develop the international market and set up a joint venture company to produce refueling trucks in the China-Belarus Industrial Park.

CNAF has signed a memorandum of understanding with Gazprom, Russia's largest aviation fuel supplier, on cooperation in joint ventures in the Commonwealth of Independent States (CIS) and Central Asian countries to supply aviation fuel at airports, enable digital exchanges and establish representative offices in each other's countries.

In addition, CNAF is actively exploring the possibility of strengthening cooperation with BP, Shell, Vitol and other major international companies in overseas markets. 

(Executive editor: Li Shuling)