As part the deal, Monroe will sign sourcing and marketing agreements with Phillips 66 and BP.
The assets to be acquired include pipeline and transportation facilities that will offer access to the jet fuel delivery network connecting Delta’s operations in the Northeast, including its hubs at LaGuardia and JFK.
The Trainer can process of 185,000 barrels per day crude oil and Delta will spend $100m to upgrade the existing infrastructure to increase jet fuel production.
Delta president Ed Bastian said, "By working with world class partners like BP and Phillips 66, we can benefit from their expertise in energy sourcing and product distribution."
BP Integrated Supply and Trading CEO Paul Reed said, "This supply and off-take agreement demonstrates BP’s continued commitment to supply U.S. customers with the feedstock and products they need."
BP will supply the crude oil to be refined at the Trainer facility and Delta said it will enter into multi-year agreements to exchange the refinery’s non-jet fuel outputs such as gasoline, diesel, and other refined products for jet fuel.
The acquisition will close in the first half of 2012 while jet fuel production would begin during the third quarter.
Delta has used $30m in state government assistance for the deal.
