delta bought a refinery
Not here, near Philadelphia. They figure they can save $300 million a year by making their own fuel, they paid $150 mill. Maybe that is the correct angle for looking to find a buyer for Hovensa. Especially if it works for Delta there may be other airlines looking to do the same.
But that refinery near Philly:
a) can probably use natural gas to power / refine the oil
b) doesn't have a $700 EPA "consent decree" (fine) attached to it
Got that right Beski 8-). This thing (aka Hovensa) down here is a totally different situation - a lot of "baggage" -like fuel source to power the refinery & the humongus EPA compliance price tag hanging over it.
Was government funds really given to Diagao? I didn't think so.
In my simple understanding, bonds were floated for the construction of the facility to be paid back by the part of the additional rum tax revenue - or am I wrong. If no bonds, then no factory, no jobs, and no additional revenue to the territory.
Why was this such a bad deal? How about some facts to back up the rhetoric and accusations.
Bought a "mothballed" refinery that had been vacated years ago..
AP says that refinery shut down last fall. (?) State of PA offered Delta a $30 million grant to seal the deal. Wonder if the VI has $30 mil lying around. 🙂
--my bad -last fall is correct.
Will be buying crude from BP.
Larry Kupfer just might be the one to run[something] over there. He's been hired by VINGN. He has knowledge of the facility. Should Hovensa decide to sell, the union has first option. Oh, wait! What union? 2nd in line is the GVI, aka, VINGN.
Will the gov't entity VINGN buy the place with our money so they can build castles with our import/port fees?
That plus the fact that jet fuel is a small part of the fractionization for crude and I don't understand how Delta is seeing an advantage with this move. If they bought a massive storage facility and wanted to store-forward when prices are lower as a hedge that I could sort of understand (of course they could hedge on the open market without buying facilities as well.)
The airlines can barely manage to keep themselves out of bankruptcy. I've no idea how they think they can make a go at being an independent refiner at a time when refining margins have been and will be challenged for years.
Delta has a good three year deal with BP for its crude and the rationale behind their decision may be partly based on this and the fact that apparently new fuel-efficient jet engines currently under production won't be off the line for at least the next three years, by which time they can start to gradually replace the older fleet. I'm only basing this thought after reading several articles on the acquisition but that seems to make some sense.