Delta Cuts out Middleman, Buys Own Oil Refinery

Through a subsidiary, Delta Air Lines is acquiring a Philadelphia-area oil refinery from Phillips 66. The airline’s Monroe Energy is investing a total of $250 million, which includes the acquisition itself and improvement to the refinery. The move will allow the refinery to increase its production of jet fuel from 14% of its output to 32%, or 52,000 barrels per day. That output plus trading other refined oil products produced there means the facility should be able to supply Delta with 80% of its domestic fuel needs. The airline says the refinery will save it $300 million annually. platts.com