Monroe Energy Refurbishes Pennsylvania Refinery with Eye on Jet Fuel

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Researched by Industrial Info Resources (Sugar Land, Texas). Monroe Energy, a subsidiary of Delta Air Lines (NYSE:DAL) (Atlanta, Georgia), is currently investing $100 million to refurbish the existing 185,000-barrel-per-day (BBL/d) Trainer (Pennsylvania) refinery to convert it from gasoline production to maximize jet fuel production. Monroe is looking to modify draw points on several units, such as the 185,000-BBL/d crude unit, 24,000-BBL/d hydrocracker unit, and 49,000-BBL/d reformer unit. The company is utilizing several contractors to perform the refurbishment, such as Nooter Construction, Matrix Service, Scheck Industries, JJ White, and Madison Industrial Services. The work commenced July 2012 and is expected to be completed by October 2012.

Monroe Energy LLC purchased the refinery from Phillips 66 Company in June 2012. The company spent about $180 million to purchase the refinery assets, and will produce 52,000 BBL/d of jet fuel. The company has agreements with other refiners to exchange gasoline, diesel, and other refined products from the refinery for jet fuel. The jet fuel that is produced will be transported to Delta operations to supply about 210,000 BBL/d in the U.S.

The Trainer refinery will be Monroe Energy's only refinery. It will require limited capital investment to gear the refinery to produce jet fuel. The refinery is expected to process Brent crude or equivalents. The company is expecting a net fuel savings of $300 million per year. The demand for gasoline is declining, and the demand for diesel and jet fuel are increasing globally.

Delta Air Lines merged with Northwest Airlines in October 2008. The company operates an extensive fleet of Boeing aircrafts. The company's main hub is located at Hartsfield-Jackson Atlanta International Airport. The international services extend to Central and South America, Australia, Africa, Asia, Middle East, and Europe.

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