By ALISON SIDER
Some units of a Pennsylvania refinery owned by a subsidiary
of Delta Air Lines will restart this weekend, a Pennsylvania
environmental official said Thursday, and the company expects
the refinery to be up and running by the end of the month.
Delta chief executive Edward
Bastian said at the Deutsche Bank Aviation and Transportation
Conference on Thursday that the refinery is on track to start
producing jet fuel by the end of September.
Delta announced in April that its subsidiary
Monroe Energy had agreed to buy the refinery from Phillips 66 with the
aim of making modifications to increase jet fuel production
Mr. Bastian said he expects the refinery to generate hundreds of
millions of dollars in savings.
We expect to generate $300 million in annual savings,
a benefit that you will start to see in the upcoming Q4
numbers, Mr. Bastian said, adding that it could be more
since the spread between crude oil and jet fuel prices is
higher than the company had expected.
Lynda Rebarchak, of the Pennsylvania Department of
Environmental Protection, said Monroe reported that some units
would restart this weekend, while the majority of the
facility's operations are expected to be up and running by the
end of September.
Ms. Rebarchak didn't know which units will be the first to
The 185,000 bpd refinery in Trainer, Pa., about 10 miles
southwest of Philadelphia, has been idle since the fourth
quarter of 2011.
Delta said Monroe would spend $100 million to convert the
refinery's infrastructure to maximize jet fuel production.
Once it is fully operational, the refinery is expected to produce
52,000 bpd of jet fuel, according to a filing with the
Securities and Exchange Commission.
Monroe also agreed to trade gasoline and other refined
products produced at Trainer for jet fuel produced at BP and
Phillips 66 refineries.
Dow Jones Newswires