Delta Air Lines wholly-owned subsidiary, Monroe Energy, has closed on its previously-announced deal to acquire the 185,000 bpd Trainer refinery complex from Phillips 66, company officials said over the weekend.
Located just south of Philadelphia, the airline expects the refinery to produce 52,000 bpd of jet fuel.
A turnaround is expected to begin shortly after the US July 4 holiday, according to media reports, with production expected to reach normal rates by September.
Jet fuel from the Trainer refinery and swaps are expected to equal 80% of Delta's domestic fuel needs.
The acquisition also includes pipelines and transportation assets that will provide access to the delivery network for jet fuel reaching Delta's operations throughout the Northeast, including its hubs at LaGuardia and JFK in New York.
"Acquiring the Trainer refinery is an innovative approach to managing our largest expense," said Richard Anderson, Delta's CEO.
"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.
Further details on the deal can be found in our previous story.