China Aviation Fuel Firm in Alliance with Kuwait

   Date:2007/09/26     Source:

China National Aviation Fuel Holding (CNAF), China's near-monopoly jet fuel distributor, has agreed to cooperate with Kuwait's state oil firm on fuel supplies, a CNAF official said on Tuesday.

CNAF and Kuwait Petroleum Corp, a major jet fuel exporter into Asia, had signed agreements on a strategic alliance and jet fuel cooperation early this month, the official said, adding that the parties had yet to hammer out concrete deals.

It marks the Beijing-based company's second global alliance following a similar one signed in March with Russia's biggest oil producer, state-controlled Rosneft.

CNAF is the parent of Singapore-listed China Aviation Oil, which controls the bulk of China's aviation fuel imports.

Kuwait Petroleum Corp rarely supplies jet fuel directly to Chinese buyers.

Jet fuel demand in China, the world's second-largest oil consumer, has been rising rapidly in recent years amid double-digit growth in the country's air traffic.

About a third of that demand was met by imports and the rest by state refiners.

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