Delta subsidiary, Monroe Energy LLC, to acquire Trainer refinery complex

Delta Air Lines wholly-owned subsidiary, Monroe Energy LLC, has reached (30-Apr-2012) an agreement with Phillips 66 to acquire the Trainer refinery complex south of Philadelphia. As part of the transaction, Monroe will enter into strategic sourcing and marketing agreements with BP and Phillips 66. The acquisition 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 New York LaGuardia and John F Kennedy International airports. After receipt of USD30 million in state government assistance for job creation and infrastructure improvement from the Commonwealth of Pennsylvania, Monroe's investment to acquire the refinery will be USD150 million, and Monroe will invest USD100 million to convert the existing infrastructure to maximise jet fuel production. Production at the refinery combined with multi-year agreements to exchange gasoline, diesel, and other refined products from the refinery for jet fuel will provide 80% of Delta's jet fuel needs in the US. Standard & Poor's Ratings Services said (30-Apr-2012) that its ratings and outlook on Delta Air Lines Inc (B/Stable/--) are not affected by the company's plan. [more - original PR]