Is Delta Air Lines closer to buying ConocoPhillips' idle oil refinery in Trainer?
That's what CNBC is reporting here.
CNBC Kate Kelly cited an unidentified source as saying the Delta board has "signed off" on the acquisition of the refinery on the Delaware River in Delaware County in a deal worth $100 million to $125 million.
Why does an airline want to buy a refinery that an oil company said it wasn't able to operate profitably? Two words: jet fuel. Delta spent about $12 billion on fuel for its planes in 2011, and the airline apparently thinks it can save 10 percent by owning its own refinery.
Idled since September, the Trainer complex has the capacity to refine 185,000 barrels of crude oil per day.
Contacted today, Delta Air Lines said it had no commment on the report.