[thackney]

http://www.philly.com/philly/business/homepage/20120621_PUC_approves_Trainer_refinery_pipelines_transfer__easing_sale_to_Delta_Air_Lines.html#ixzz1yWUPFpgl

...

Commission chairman Robert F. Powelson extolled the PUC’s contribution to efforts to assist in the Delaware County refinery’s sale, which is being supported with $30 million in grants from the Corbett administration. Powelson called the commission’s role “an excellent example of how government can aid in economic development while still protecting the public interest.”

The $180 million sale, announced in April, is expected to close this month, according to the application with the PUC.

The refinery, which will operate under the name Monroe Energy L.L.C., is scheduled to restart operations in September, after Delta spends about $100 million to upgrade it to optimize jet-fuel production. The plant halted operations in September 2011.

...

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Delta says it won’t sell jet fuel on open market
http://in.reuters.com/article/2012/06/18/us-refinery-operations-delta-monroe-idINBRE85H12W20120618

Delta Air Lines Inc (DAL.N), which took the bold step of bidding for a refinery to keep a handle on fuel costs, said on Monday it would not be selling jet fuel on the open market once the deal closes.

Monroe will spend about $100 million to convert the 185,000 barrel-per-day refinery in Trainer, Pennsylvania, to increase its jet fuel output to 52,000 bpd or about 32 percent of output, cutting back production of gasoline.

“We will produce and sell the jet fuel to ourselves,” said Eric Torbenson, a spokesman for the airline, the second-largest in the United States.

[basil]

ping for later

[jdsteel]

The difference a Republican governer can make. I can’t imagine a “greenie” Democrat doing anything other than BLOCKING efforts to re-open a refinery. Good job, Corbett.

[no-to-illegals]

This leaves my thought process humming ... and thinking is Delta seeking too big to fail status? Is there such a status handed out after a company or entity receives certain pieces of the economy via purchases of relevant necessary pieces where consumers are beholding to need of same products produced? Let's look at it another way. Would the purchases require removal from the marketplace products all consumers require to attain too big to fail status? Are the too big to fail companies automatically given this status once their purchases achieve consumer product necessity status? Can only ask questions ... am too ignorant to understand the system of too big to fail.

[Darth Reardon]

I don’t get this. They claim they’ll save money, but they will still effectively be paying market rate, as every gallon they use could have been sold to someone else. It sounds like they will be increasing the amount of jet fuel refined, by restarting a shuttered plant and “retooling” it for jet fuel, but if that is economical why wouldn’t someone in the jet fuel industry do it? And how are they going to get the fuel to the planes, some of which need to refuel when they are thousands of miles away?

[NonValueAdded]

vertical integration