Monroe Energy, owned by Delta Airlines, has announced that it has inked a deal with Phillips 66 to purchase its Trainer refinery located south of Philadelphia.

This $150 million purchase makes Delta Airlines the first airlines to produce its own jet fuel for flight operations.

In the deal, Delta will purchase crude oil from BP for the refinery as well as trade non-jet fuel output from the refinery for jet fuel produced in other facilities from Phillips 66 and BP.

“By working with world class partners like BP and Phillips 66, we can benefit from their expertise in energy sourcing and product distribution,” said Ed Bastian, Delta’s president. “We are also pleased to partner with Governor Corbett and the Commonwealth of Pennsylvania, the Pennsylvania Congressional delegation, and Delaware County to create jobs and economic growth for the region while generating substantial fuel savings for Delta.”

Trainer will be run by a seasoned leadership team headed by 25-year refinery veteran Jeffrey Warmann. In his last position as refinery manager for Murphy Oil USA, Inc.’s Meraux, La. refinery, Warmann led Meraux’s restructuring efforts, increasing refinery output by more than 30 percent and significantly improving Meraux’s profitability.

The deal is expected to be closed during the first half of this year.