Air BP and CNAF expand partnership in fast-growing Chinese aviation market

Air BP and China National Aviation Fuel Group (CNAF) today announced the signing of a joint venture agreement to operate a general aviation fuel business in Southwest China, covering Sichuan Province, Guizhou Province and Chongqing Municipality. 

The agreement was signed by Alan Wilson, China strategic project director of Air BP and Shi Haiping, executive director of CNAF GA Development Company Ltd and witnessed by Jon Platt, CEO Air BP, Xiaoping Yang, BP China chairman and president, Zhou Qiang, Chairman of CNAF and Xi Zhengping, General Manager of CNAF.

Subject to regulatory approvals, the joint venture, CNAF Air BP General Aviation Fuel Company, intends to support the growth and development of China's general aviation sector – civil aviation other than commercial air transportation – with the intention to expand the scope further in future.

The Chinese general aviation sector has seen rapid growth in recent years and this is expected to continue. China's government has said that by 2020 it expects general aviation in China will reach two million hours flown and the fleet size will exceed 5,000 aircraft. 

"We are delighted to extend our existing successful partnership with CNAF from commercial aviation into general aviation," said Jon Platt, CEO Air BP. "Combining Air BP's globally renowned global aviation fuels, best practices and innovative fuelling technologies with CNAF's strong presence and local expertise, we look forward to jointly contributing to the sustainable development of China's aviation industry over the long term." 

Zhou Qiang, Chairman of CNAF, said, "Although China's general aviation is still in its early stage, we are confident that it will grow into a towering tree and become the two wings of China's aviation industry together with commercial aviation. The cooperation between CNAF and Air BP will support the development of China's general aviation industry."

Air BP has been a long-term partner, in China's commercial aviation sector, with CNAF through its Shenzhen Chengyuan Aviation Oil Co., Ltd. and South China Bluesky Aviation Oil Co. Ltd joint ventures. The two joint ventures currently supply aviation fuel to 29 airports in central and southern China. 

This newly-signed joint venture agreement not only underlines BP's continued confidence and commitment in the Chinese market, but also reaffirms our dedication to support the transformation of China's industry through innovation and growth," added Xiaoping Yang, BP China chairman and president.

Further information

Contacts

BP press office, China: +86 (0)10 6589 3878, bpchinapress@bp.com
BP press office, London: +44 (0)20 7496 4076, bppress@bp.com

Notes to editors

• BP is one of the leading foreign investors in the Chinese oil and gas sector. BP's business activities in China include oil and gas exploration and development, petrochemicals manufacturing and marketing, aviation fuel supply, oil products retailing, lubricants blending and marketing, oil and gas supply and trading, LNG terminal and trunk line operation, chemicals technology licensing, advanced mobilities as well as venturing. Building on its business successes in China, BP has also expanded partnerships with Chinese national energy companies internationally. Further information about BP China is available on www.bp.com.cn.

• As the aviation division of BP, Air BP is one of the world's leading suppliers of aviation fuel products and services. We have been investing in the aviation industry for over 90 years to keep people flying safely around the world. We supply around 6.6 billion gallons of aviation fuel a year; fuelling over 6,000 flights a day at over 800 locations in more than 55 countries - that's more than four planes a minute. Our customers include commercial airlines, the military, business and private aircraft owners, airports and airfield operators. We have a wide range of services to support our fuel offer including the design, build and operation of fuelling facilities, technical consultancy and training, low carbon solutions, the Sterling Card for efficient general aviation refuelling and innovative digital platforms to increase efficiency and reduce risk. For more information, go to www.airbp.com.
  

• Established in 1991, Shenzhen Chengyuan Aviation Oil Co., Ltd. is BP's first aviation joint venture in China. It supplies aviation fuels to Shenzhen airport.

• Established in 1997, South China Bluesky Aviation Oil Co. Ltd. was formed by BP, China Aviation Oil Supply Corporation Ltd. and Fortune Oil. It supplies aviation fuels to 28 airports in central and southern China.

• China National Aviation Fuel Group Limited is the largest state-owned aviation fuel supplier which integrates the purchase, transportation, storage, quality management, sales and into-plane service of aviation fuel in China. CNAF is also the largest aviation fuel supplier in Asia. CNAF holds the shares of over 20 domestic and overseas businesses, and has an intensive nationwide sales network, logistics and distribution system of aviation fuel, refined oil products and petrochemicals. It offers aviation fuel into-plane services to over 300 aviation customers at more than 229 domestic commercial airports and 57 overseas airports where CNAF has its own fuel supply facilities. It offers wholesale, retail, storage and distribution of gasoline, diesel and petrochemical products in 25 provinces in China. It runs large-scale logistics and warehouse bases for refined oil products and petrochemicals in the Yangtze River Delta Region, the Pearl River Delta Region, the Pan Bohai Bay Rim Region and Southwest China.

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