Delta Air Lines purchases Trainer, Pennsylvania, refinery

Delta Air Lines has completed the purchase of the 185 000 bpd Trainer, Pennsylvania, refinery from Phillips 66, becoming the first air carrier to enter into fuel production.

The US$ 180 million deal was completed on June 22 and will see the shuttered plant and reopened and reconfigured specifically towards the production of jet fuel.

Delta subsidiary Monroe Energy will operate the plant, and maintenance is scheduled to begin shortly after the US July 4 holiday, with a view to begin fuel production proper in the Autumn. The process began with some workers heading back to the refinery on June 25 for training and orientation.

Monroe will invest approximately US$ 100 million to convert the refinery, increase jet fuel output to 52 000 bpd and cut back on gasoline production. The ultimate aim of the purchase is to lower jet fuel costs for Delta. The airline spent up to US$ 12 billion on fuel last year (average US$ 3.06/gal.), which was by some distance the largest expenditure on its balance sheet. Delta hopes to trim approximately US$ 300 million from its annual fuel bill.

The deal includes US$ 30 million in state money, with the condition that the air carrier keeps on at least 402 full time workers at the plant. This number equates to the number of workers employed at Trainer before it was idled.

Edited from various sources by Joe Hester

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/26062012/delta_purchases_trainer_refinery/