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Vol. VIII Issue. 44
Delta said to seek 10 pc fuel savings with ConocoPhillips refinery

17 April 2012

April 12, 2012. Delta Air Lines Inc., whose daily 2011 fuel bill was $32 million, may buy a ConocoPhillips refinery to help save 10 percent on a significant portion of its fuel needs. Talks are under way about an idled ConocoPhillips facility in Trainer, Pennsylvania. Delta would get fuel from Trainer and from other refiners in exchange for products made there that Delta doesn't use. ConocoPhillips plans to shut the Trainer operation unless it can find a buyer by the end of May as tighter profit margins squeeze East Coast refineries. For Atlanta- based Delta, a deal would help shave annual fuel costs that reached $11.8 billion for its main jet operations and regional partners, or 36 percent of all spending. Delta seeks to save 10 percent on fuel tied to the Trainer deal. Fuel from that refinery and others linked to the agreement would cover some though not all of the needs at the world's second-largest carrier.

      
 
 
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