Eastern Railroad Discussion > [PA] Update on Delta's Trainer refinery

>>Monroe Energy LLC, a subsidiary of Delta Air Lines Inc., has entered into a 5-year agreement with midstream logistics provider Bridger LLC, Addison, Tex., to supply 65,000 b/d of US crude oil to Delta’s 185,000-b/d refinery in Trainer, Pa.<<

The article says that's about 1/3 of the daily barrel requirement, and the article says the refinery wants to get at least 1/3 of its daily requirement from US sourced crude. So figure about 80 crude tank cars daily as their target, with the rest likely coming in by ship. Trainer was once a 100% imports plant.

The article notes that Bridger has acquired 1,300 newer 1232 tank cars to support the effort.


<http://www.ogj.com/articles/2014/07/delta-inks-crude-supply-agreement-for-trainer-refinery.html

It's nice to hear that our country is going to provide some crude oil instead of some foreign country.

Jim

I went by the refinery yesterday and Monroe has nice signs up and are repainting some of the storage tanks. However, I'm still curious how they will unload 80 cars of oil a day. They load propane at some racks on a weird switchback route. I suppose they could build new tracks on the north side of Stoney Creek yard, but it is almost impossible to see that area without tresspassing. Google Earth shows there is room for that. But I rather suspect they will send their oil trains to the new Eddystone oil terminal, which is only 5.5 miles away by barge. That terminal is not connected to any refinery. Google still shows coal piles there. Google Earth really needs to update their images of all the area refineries and oil terminals as none of the rail improvements of the last three years show on Google Earth images.

Who serves this refinery or the Eddystone terminal. NS or CSX

r

rhotond Wrote:
-------------------------------------------------------
> Who serves this refinery or the Eddystone
> terminal. NS or CSX
>
> r

both fall under Shared Assets but my question is where are they going to locate the unloading racks ... there's no way there is room for loop tracks

here's a sat image of the Trainer refinery adjacent to CR's Stoney Creek yard ...

https://goo.gl/maps/sPCco



Edited 1 time(s). Last edit at 07/22/14 12:28 by Out_Of_Service.

Right, no possibility of loop tracks. Loops are only needed if you have to quickly load or unload more than one train a day, and you have the land. What I see as a possibility is using the existing siding with CH's on it as the main, convert the siding to an unloading track and extend it east on the north side of Stoney Ck yard. CR can provide crews to switch or they could lease some track and do it themselves. Several possibilities, even stub tracks if they only have 80 cars a day. In the image you can see the existing switchback to the short rack tracks below the vegetation area west of the creek.

The new unloading yard at PBF has six tracks, but rack only on one of them. They will just have Savage switch cuts in and out.

Does anyone know what the plan is for how they'll ship out the refined product (i.e., jet fuel)? Will it go by pipeline or rail? And where will it go? I can't imagine Delta shipping jet fuel in rail tank cars to all the major airports around the country that it serves. It would be good business for the railroads but the numbers probably wouldn't crunch correctly.

CA_Sou_MA_Agent Wrote:
-------------------------------------------------------
> Does anyone know what the plan is for how they'll
> ship out the refined product (i.e., jet fuel)?
> Will it go by pipeline or rail? And where will it
> go? I can't imagine Delta shipping jet fuel in
> rail tank cars to all the major airports around
> the country that it serves. It would be good
> business for the railroads but the numbers
> probably wouldn't crunch correctly.


The older thread mentions that Delta uses pipe to get the jet fuel off the property and into the sales channel. It buys fuel at its various terminals, and uses this supply as a partial hedge to its purchases elsewhere.

I don't think Delta is a major player in the Philadelphia air market.

They will swap the fuel with another fuel company, for equal amounts at locations where they need it.
Same as all the oil companies do. You think if u buy Shell gas, it necessarily comes from a shell refinery?
Guess again. Gas is Gas. Marketing is Marketing.

The oil trains will unload in Eddystone and and transload to barges for delivery to Trainer.

Updating this four year old thread.

Delta has the whole refinery on the market, after a failed attempt to sell part of it

Reuters: https://www.reuters.com/article/us-usa-refinery-delta-air-sale-exclusive/exclusive-delta-air-is-trying-to-sell-east-coast-refinery-sources-idUSKCN1PQ5QQ

> It's nice to hear that our country is going to provide some crude oil
> instead of some foreign country.

U.S. crude oil production in October 2018 was at an all-time high, 11.5 million barrels per day, breaking the previous record set in 1970. The U.S. is now the world’s leading crude producer... more than Russia or Saudi Arabia. That said, the U.S. consumes more like 20 million barrels per day. 

Beyond that, the statistics get very complex. See https://www.forbes.com/sites/rrapier/2018/12/09/no-the-u-s-is-not-a-net-exporter-of-crude-oil/#240ac19d4ac1. The U.S. isn't really oil-indepedent yet, but we are much closer than anytime in recent memory.