China Aviation Oil Looks Towards India, Middle East

According to reports, China Aviation Oil (CAO), Asia’s top jet fuel buyer, is planning to tap newer growth markets like India and the Middle East as part of its plan to expand globally, its chief executive said. The report further stated that CAO’s immediate plans are to focus on setting up its first European trading office in 2013 to meet growing demand from budget airlines, whereas targeting the Gulf and Indian markets for next year is a being planned. Chief executive Meng Fanqiu was quoted in the report.

“While China will still be the main locomotive (for jet fuel demand), other newer economies in Asia-Pacific will also fuel demand,” he said.

CAO imports most of China’s jet fuel needs and its top customers include the nation’s three biggest international airports.

According to reports and statements, CAO’s projections, jet fuel consumption by China will grow by 9 per cent to 10 per cent next year, near 2012 levels but lagging average annual growth of 11 per cent from 2011 to 2015.

“These two years it failed to achieve the growth rate, about 1 per cent difference, but 10 per cent is still high,” Meng said. “If the macro economy sees some improvement next year, then it might stand a chance to hit 11 per cent growth. In 2014, the macro economy will likely be better.”

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