China Aviation Oil Sets Up Trading Subsidiary to Expand Into Europe

China Aviation Oil (Singapore) Corp Ltd (CAO), said it has set up a London-based subsidiary to expand operations into Europe to take advantage as well as increase the value of the continent’s growing oil trade with Asia.

CAO said the establishment of wholly owned China Aviation Oil (Europe) Limited and last year’s launch of North America Fuel Corpare part of the company’s plan to build a global supply and trading network. As Asia’s largest physical jet fuel trader, CAO has set its sights on becoming a global trader of crude oil and products.

“The group’s presence in Europe is synergetic to its position as Asia’s largest physical jet fuel supplier and trader, where it may play an important role in channelling increasing jet fuel supply in the Asia Pacific to the European region, a key market increasingly dependent on imports where ageing and less cost-efficient refineries are being closed,” said CAO.

The new office will also enable the company to tap into North America and Middle East through cross regional deals that will optimise its supply and trading activities globally as well as capture arbitrage opportunities across the three continents.

Meng Fanqiu, CAO’s CEO, said: “CAO has focused on growth in the Asia Pacific region for the last few years, successfully establishing a leading position in the physical jet fuel supply market. As part of our 2020 strategy, we will venture beyond Asia. The setting up of a European office is a key step towards creating a global trading network.”

(energyasia.com, edited by Topco)