Delta Air Lines could become the owner of a
Philadelphia-area refinery as early as this week,
CNBCs Kate Kelly reported on Monday, citing an anonymous
Delta is on the verge of finalizing the deal to buy the ConocoPhillips refinery in
Trainer, Pennsylvania, for between $100 million and $125
million, according to the CNBC report.
As part of the deal, J.P. Morgan would buy overseas crude
oil, ship it to Pennsylvania, and finance the refining process, Kelly
J.P. Morgan would then sell jet fuel to Delta at a wholesale
cost. In addition, ConocoPhillips plans to take some of the
gasoline and convert it into additional jet fuel for Delta, the
CNBC report says.
The Delta board has signed off on the Trainer refinery purchase, and the company
is hopeful the deal can be completed this week, according to
Delta spent $12 billion last year on jet fuel, leading it to
search for ways to cut costs.
To read the full CNBC report, click