Delta Buys an Oil Refinery

During 2012, Trainer's production will reduce Delta's fuel costs by more than $100 million.

A wholly owned subsidiary of Delta Air Lines, Monroe Energy LLC, has agreed to buy the Trainer petroleum refinery complex near Philadelphia, preventing it from a planned closure and puting Delta in position to produce most of the jet fuel needed for its U.S. flights, the airline announced April 30. BP and Phillips 66 are involved through sourcing and marketing agreements, and $30 million in state government assistance is part of the deal.

Monroe is investing $150 million to buy the refinery and spending $100 million to convert its infrastructure to maximize jet fuel production. Some of its production will be gasoline that is traded with BP, which will supply the crude oil that is refined at Trainer, and Phillips 66 to acquire jet fuel -- enough to satisfy 80 percent of Delta's domestic jet fuel needs.

"Acquiring the Trainer refinery is an innovative approach to managing our largest expense," said Richard Anderson, Delta's chief executive officer. "This modest investment, the equivalent of the list price of a new widebody aircraft, will allow Delta to reduce its fuel expense by $300 million annually and ensure jet fuel availability in the Northeast. This strategy is aligned with the moves we have made to build a stronger airline.

"We are delighted to bring BP's global scale and access to the world's energy markets to this strategic agreement with Delta," said Paul Reed, CEO of BP's Integrated Supply and Trading. Trainer will be run by a seasoned leadership team headed by 25-year refinery veteran Jeffrey Warmann.

Monroe is expected to close on the acquisition in the first half of 2012. During 2012, Trainer's production will reduce Delta's fuel costs by more than $100 million. The Trainer complex has a crude oil processing capacity of 185,000 barrels per day and processes mainly light, low-sulfur crude oil.

Download Center

HTML - No Current Item Deck
  • Green Quadrant EHS Software 2021

    Reserve your copy of the new report by independent analyst firm, Verdantix, to get a detailed, fact-based comparison of the 22 most prominent EHS software vendors in the industry.

  • Best Practices to Navigate ISO 45001

    Learn helpful tips and tricks to navigate your transition to ISO 45001 certification and ensure an effective health and safety management system.

  • Improve Your Safety Culture

    Learn the 3 fundamental areas to focus on to achieve safety culture excellence and what you can do to boost employee engagement in your EHS programs.

  • Chemical Safety: 5 Questions Answered by Experts

    Get answers to 5 of the most frequently asked questions about how to effectively mitigate chemical risk, get the most value out of your chemical data, and gain buy-in for a chemical management technology program.

  • How Has COVID-19 Changed Safety Culture?

    The COVID-19 pandemic has provided unique opportunities for health and safety professionals to rethink how they manage risk and develop stronger safety cultures. Read this eBook to learn actionable steps you can implement today to improve your programs.

  • Industry Safe

OH&S Digital Edition

  • OHS Magazine Digital Edition - January February 2021

    January February 2021

    Featuring:

    • TRAINING: SOFTWARE
      Tips for Choosing the Best Training Software
    • COMBUSTIBLE DUST
      Assessing the Dangers of Dust Explosions
    • HAND PROTECTION
      Pushing the Boundaries of Hand Protection
    • FOOT PROTECTION
      Getting a Grip on Slip Resistance
    View This Issue