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

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