12 June 2012 21:42 [Source: ICIS news]
HOUSTON (ICIS)--Delta Air Lines plans to increase the jet-fuel capacity of the Trainer refinery in Pennsylvania by 32%, a US agency said on Tuesday.
Delta plans to buy the idled 180,000 bbl/day refinery from Phillips 66 so it can produce most of its own jet fuel.
In a 30 April presentation, Delta Air Lines said it planned to spend $100m (€80m) so the refinery could produce 52,000 bbl/day of jet fuel.
That would represent an increase of 32%, according to the Energy Information Administration (EIA).
Meanwhile, Delta plans to exchange the other refined products with BP and Phillips 66 for an additional 120,000 bbl/day of jet fuel, the airline said in the presentation.
In all, the Trainer refinery should provide Delta with 172,000 bbl/day – or 80% of its 210,000 bbl/day in domestic jet-fuel needs, the company said.
Ultimately, Delta expects the refinery to save it $300m/year in fuel costs, it said.
Delta expects the acquisition to close in the second half of this year. Jet-fuel production should start early in the third quarter.
Delta is buying the refinery through a subsidiary, Monroe Energy, for $180m. The amount includes $30m it is receiving from the state of Pennsylvania.
Delta said it would not comment on the EIA statements.
($1 = €0.80)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections