Delta Air Lines has confirmed that it will sell jet fuel following its purchase of the Trainer refinery in Pennsylvania, USA, in April. “We’re probably the largest private purchaser of jet fuel in the United States but we don’t get to participate in the pricing function,” said Richard Anderson, CEO of Delta, at the company’s AGM. “It’s our intention to begin to participate in the pricing function and put a lot of downward pressure on the cost of refining a barrel of jet fuel.”
The Trainer refinery will produce 52,000 barrels a day (equivalent) of jet fuel, and will exchange all other products with BP and Phillips 66 for an additional 120,000 barrels a day of jet fuel in other locations around the country. The airline consumes about 210,000 barrels a day so 52,000 odd barrels are free to sell at this time.
Delta said it will spend $100 million to convert the refinery to increase production of jet fuel to 32% from the current 14%, a process that is underway.