New Delhi: US President Donald Trump has announced plans for a USD 300-billion oil refinery project backed by Reliance Industries, marking what he described as the first new refinery to be built in the United States (US) in half a century. In a post on the social media platform Truth Social, Trump said the refinery would be developed by America First Refining at the Port of Brownsville in Texas with investment support from Reliance Industries, India’s largest private-sector company.
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“Today I am proud to announce that America First Refining is opening the FIRST new US Oil Refinery in 50 YEARS in Brownsville, Texas,” Trump wrote, calling the project a “historic $300 billion dollar deal.”
The US president described the investment as “the biggest in US history” and said the refinery would help strengthen domestic fuel supply and energy security. “Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment,” Trump said. Reliance did not respond to a request for comment on the announcement.
The planned refinery will have a capacity of 168,000 barrels per day, according to a statement issued by America First Refining. “For the first time in half a century, the United States will build a new refinery designed specifically for American shale oil,” said America First Refining chairman and founder John V Calce. Many refineries along the US Gulf Coast were configured over the past four decades to process heavy, sour crude oil, which has higher density and sulphur content.
By contrast, crude from US shale formations is typically light and sweet, making it difficult for several existing refineries to process efficiently without significant upgrades. The new facility is expected to help process growing shale output from US fields and supply refined fuels to domestic markets.
America First Refining said a “global supermajor” has committed a nine-figure investment at a 10-figure valuation, identifying Reliance Industries as the investor. The company added that Reliance has signed “a binding 20-year offtake term sheet,” under which it will purchase products produced by the refinery. The arrangement is expected to support the project’s financing and commercial viability.
Trump said the refinery would “fuel US markets, strengthen our national security, boost American energy production, deliver billions of dollars in economic impact, and will be the cleanest refinery in the world.”
The refinery is expected to be constructed at the Port of Brownsville, a key energy logistics hub near the southern US border. America First Refining said it plans to break ground in the second quarter of the year.
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The announcement comes amid rising gasoline prices and heightened volatility in global oil markets following geopolitical tensions in West Asia that have disrupted energy flows through the Strait of Hormuz.
Reliance Industries operates the 1.4 million barrels per day Jamnagar refining complex in India, widely regarded as the world’s largest refining hub.