Trump says Reliance to back first new US oil refinery in 50 years

US President Donald Trump said the United States will see its first new oil refinery built in five decades, backed by investment linked to India’s Reliance Industries.

Trump announced the project in a post on Truth Social, saying the refinery will be located in Brownsville, Texas, and developed by America First Refining.

“I am proud to announce that America First Refining is opening the FIRST new US Oil Refinery in 50 YEARS in Brownsville, Texas,” Trump said Tuesday in a post on Truth Social.

The announcement comes at a time of heightened volatility in global energy markets following tensions in the Middle East that have pushed oil prices sharply higher.

Reliance-backed refinery project in Texas

The planned refinery will be developed at the port of Brownsville in Texas and is designed to process entirely US shale oil, according to America First Refining.

Trump said the project is being supported by investment from Reliance Industries, controlled by Indian billionaire Mukesh Ambani.

“THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN US HISTORY,” Trump said in a separate post.

He also thanked the Indian energy giant for its involvement in the project.

Reliance owns the world’s largest oil refinery complex in Jamnagar, India, and has a market capitalization of about $206 billion, according to LSEG data.

The Brownsville facility will process US light shale oil and aims to strengthen domestic refining capacity, according to America First Refining.

The company also said it has secured a long-term commercial agreement tied to the project.

According to the firm, a “global supermajor” investor has provided a nine-figure investment in the refinery at a ten-figure valuation.

The same partner has also signed a 20-year agreement to purchase, process, and distribute the shale oil produced at the facility.

Project revives rare US refinery construction

The refinery project traces back to a development originally planned by Element Fuels, which announced in June 2024 that it had completed site preparation and secured permits for a refinery capable of processing roughly 160,000 barrels of oil per day.

Element Fuels’ website now redirects to America First Refining, the company Trump said will develop the new plant.

America First Refining said construction is expected to begin in the second quarter of this year.

The facility will process approximately 1.2 billion barrels of US light shale oil, valued at about $125 billion, and is expected to produce roughly 50 billion gallons of refined products worth an estimated $175 billion.

“The United States has a surplus of light shale oil but a shortage of refining capacity designed to process it,” said Trey Griggs, president of America First Refining. The refinery, he added, would strengthen the domestic supply chain.

Energy security and refining capacity concerns

The announcement comes as the White House attempts to calm concerns about rising fuel prices linked to geopolitical tensions and the war involving Iran.

Oil prices have been volatile in recent sessions, briefly approaching $120 per barrel before easing.

Higher fuel costs have raised worries about inflation and economic stability.

The Trump administration has emphasized policies aimed at boosting US energy production and strengthening domestic supply chains.

“[The refinery] will strengthen our National Security, boost American Energy production, deliver Billions of Dollars in Economic impact, and will be THE CLEANEST REFINERY IN THE WORLD,” Trump said.

While US oil production has surged in recent years due to the shale revolution, the country relies on an aging network of refineries, with several facilities shutting down in recent years.

Attempts to build new refineries in the United States have often stalled due to high construction costs, complex permitting requirements and environmental opposition.

A previous effort in the mid-2000s by Arizona Clean Fuels Yuma to construct a refinery south of Phoenix failed after developers were unable to secure sufficient financing.