Key insights
- The Trump administration will utilize the Defense Production Act to expand the processing capacity of Delek US Holdings' refinery in Tyler, Texas. This move aims to increase the production of commercial and military-spec fuel, with the stated goal of lowering consumer costs for transportation and ensuring a more reliable energy supply. The expansion is part of a broader White House strategy to address fuel prices ahead of midterm elections.
HOUSTON, Oct 13 (Reuters) - The Trump administration will use the Cold War-era Defense Production Act to expand the processing capacity of a refinery in Texas owned by Delek US Holdings, Vice President JD Vance said on Tuesday.
The Delek announcement is the latest in a series of White House moves aimed at taming fuel prices ahead of November’s midterm elections, in which affordability has become a defining issue for voters.
The push has included efforts to inject more diesel into the market — most controversially through a US general license easing restrictions on Russian-origin diesel, a step that drew criticism from Democrats and some Republicans alike.
“Today I am pleased to announce that the Trump Administration, working with the refinery at Delek, has used the Defense Production Act and we’re going to expand the refinery right here in Tyler, Texas," Vance said while speaking in Texas.
"We want millions of gallons of commercial grade and military-spec fuel to come out of this refinery in addition to what it’s already producing," Vance said.
"What that means for you and your families is lower cost to fly from one place to another, it means lower costs to drive your car into work every single day. It means a more reliable energy supply...," Vance said.
The Tyler, Texas refinery, situated about 200 miles (322 km) north of Houston, currently processes about 74,000 barrels per day.
The White House and Delek did not immediately respond to questions about how much funding is being allocated to the expansion or by how much it would increase refining capacity.
Capacity expansions at refineries typically are capital intensive and take many months, if not years, to complete depending on the complexity of the additions.
Trump is expected in the coming days to issue a directive pushing administration officials to find ways to bypass state and local regulations blocking energy production and to use the Defense Production Act to expand refining capacity, Reuters reported last week.
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