Delta Air Lines to Acquire Refinery Complex

Delta Air Lines A330-200 | Delta Buying Oil Refinery | Commercial Aviation and Airline News

Delta to Produce Jet Fuel for most US Flights

In a unique, first of its kind move, Delta Air Lines has negotiated to purchase an oil refinery to supply the airline with its jet fuel needs in the United States.

Delta Air Lines wholly-owned subsidiary, Monroe Energy LLC, has reached agreement with Phillips 66 to acquire the Trainer refinery complex south of Philadelphia.   The Trainer refinery complex is named after the city it resides in, Trainer, Pennsylvania, and is located conveniently on the Delaware River.

As part of the transaction, Monroe Energy will enter into strategic sourcing and marketing agreements with British Petroleum (BP) as well as Phillips 66.

One important aspect of the deal is pipelines and transportation assets which will provide for delivery in the Northeast, including the Delta hubs at New York’s JFK airport and New York LaGuardia.

Upon receipt of $30 million in state government assistance for job creation and infrastructure improvement from the state of Pennsylvania, Monroe Energy’s investment to acquire the refinery will be $150 million while an additional $100 million is spent to convert the existing infrastructure to produce and maximize jet fuel production.  Refinery production coupled with agreements to exchange gasoline, diesel, and other refined products from the refinery for jet fuel will provide 80 percent of Delta’s jet fuel needs in the United States.  Monroe Energy has a three year agreement with BP to supply crude oil to be refined at Delta’s new facility.

Richard Anderson, Delta’s Chief Executive Officer, said, “Acquiring the Trainer refinery is an innovative approach to managing our largest expense.”  Anderson continues, “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 for our shareholders, employees and customers.”

Both the State of Pennsylvania and Delaware County, where the refinery is located, have agreed to provide assistance to ensure the refinery continues its economic contribution to the region.

This makes the refinery purchase a sweet deal for Delta Air Lines.  The company expects to close on the acquisition in the first half of 2012 and the production of jet fuel is expected to begin in the third quarter.  This alone is expected to provide Delta Air Lines with a jet fuel savings of more than $100 million in 2012 alone.

Paul Jacobson, Delta’s Chief Financial Officer, knows this will significantly cut jet fuel costs.  Speaking of the acquisition, Jacobson said, “We expect the Trainer acquisition to be accretive to Delta’s earnings, expand our margins, and to fully recover our investment in the first year of operations.”  Jacobson added, “We look forward to closing this transaction and moving quickly to begin capturing its benefits.”

Once acquired, the Trainer refinery will be run by an experienced team with Jeffrey Warmann, a 25-year refinery veteran at the top.

The facility is located on the Delaware River in Trainer, Pennsylvania, which is nearly 10 miles southwest of downtown Philadelphia.  The complex has the ability to process 185,000 barrels a day.

Industry experts believe this will likely be successful, providing Delta Air Lines with an advantage over its competition in keeping its largest expense, jet fuel, at a cost below the competition.

 

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6 Responses

Hello,
I was wondering how I can contact the folks in HR at Monroe Energy to submit my resume? I am currently an unemployed Maintenance Foreman/ CA from the Sunoco refinery in Philadelphia, and live local to this refinery. I was responsible for the Facilities for the refinery and pipelines/tank farms in Philadelphia.
I can be contacted by phone or email. 207-252-5277 or [email protected]

Thank you in advance for your cooperation.

Jeff MacKenzie

04.30.12

I would first try to find a number to Monroe Energy, otherwise try calling the switchboard at Delta Air Lines headquarters. Ask for Monroe Energy there.

As far as getting the switchboard #, I would try 404 information. 404-555-1212 and make it clear you want the # to their HQ and not reservations.

Your Comments

I too am trying to apply for a position posted at the Trainer refinery. I previously was employed by Sunoco and an agent for PBF Energy, LLC, I an very familiar with Jet moves through the pipeline and truck loading at the rack where Delta was a customer.
Not having any success applying online for the job posting.
Any help you can providie would be greatly appreciated before the opportunity is missed.

Thank you.

04.30.12

Mary –

What type of problems are you encountering with the application process? Hope either I can help or someone who sees this who has more info.

Happy 4th of July!

Good Luck,

JS

04.30.12

Your Commsnts

When I applied for the job posted on Monroe’s website it went to CareerBuilder. I answered the generic questions they provided, however there was no where to attach my resume.
I prefer my application go directly to Monroe Energy but do not have or see an email address or phone number for them. Thank you for responding to my question.

04.30.12

Not familiar with the Career Builder website, but you may want to make sure you have all your plug-in’s enabled – or try a different web browser. It could be something JavaScript that isn’t working on one browser, but might work with another.

There may also be a help or FAQ section on the website which may answer questions such as attaching a resume.

I’d also look for the postal address to Monroe Energy’s headquarters, or whereever they have their HR office at and snail mail your resume to human resources. I don’t think it would hurt.

Possible the unemployment office may have resources to get your resume to them. Where I live, even if you’re not on unemployment, they have PC’s to complete applications online and staff to help.

I’m sure these are high demand jobs since they’re in the oil and refinery (energy) industry so it’s importantant to get recognized. Most larger companies store resumes electronically these days and filter down the field of applicants by keyword searches.

You may know a lot of this but it was a learning process for me. I just got hired by a company regional airlines outsource to after going through a period of unemployment after the airline I worked for merged and cut many good union jobs.

Mike

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