Delta to raise Trainer jet-fuel capacity by 32% – US agency

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)


By: Al Greenwood
+1 713 525 2645



AddThis Social Bookmark Button

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.

Printer Friendly

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