U.S. President Donald Trump announced Tuesday that the United States will build its first new oil refinery in half a century, a project backed by India’s Reliance Industries and valued at up to $300 billion through long term supply and product agreements.
The refinery will rise at the port of Brownsville in Texas and will process American shale oil, according to the project’s developers. Trump described the agreement as a landmark investment while crediting Reliance Industries, the energy conglomerate led by Indian billionaire Mukesh Ambani.
“THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY,” Trump wrote on Truth Social, thanking Reliance Industries “for this tremendous Investment.”
Reliance Industries operates the world’s largest oil refining complex in Jamnagar, India and carries a market capitalization of about $206 billion, based on LSEG data. The Texas project signals a renewed push by the company into overseas energy investments.
The refinery will be developed by America First Refining, a startup focused on expanding U.S. refining capacity for domestic crude production. According to the company, construction of the 168,000 barrel per day facility will begin in the second quarter of this year.
Trump said the Brownsville 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.”
The facility will process 100 percent American shale oil. Developers say the project addresses a long standing mismatch between U.S. crude supply and refining capacity.
“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 announcement comes during a period of heightened volatility in global oil markets. Crude prices have climbed as tensions rise in the Middle East amid the escalating U.S. Israel conflict with Iran.
Oil prices surged close to $120 a barrel earlier this week before easing slightly. U.S. crude was trading at $84.71 per barrel late Tuesday, while Brent crude reached $88.98.
Higher prices often benefit shale producers and refiners by improving margins on processed fuel products such as gasoline, diesel, and jet fuel.
America First Refining said the project includes a 20 year agreement with a global energy supermajor to purchase the refinery’s output. The company previously disclosed it had received a “9 figure investment from a global supermajor at a 10 figure valuation,” though it did not identify the investor.
Under the long term arrangement, the refinery will process about 1.2 billion barrels of U.S. light shale oil valued at roughly $125 billion. The facility will also produce an estimated 50 billion gallons of refined petroleum products worth around $175 billion.
Combined, those transactions account for the $300 billion figure highlighted by Trump.
Industry analysts note the actual equity investment in the refinery itself remains significantly smaller, likely several hundred million dollars, while the bulk of the value comes from long term purchase and supply agreements.
The Texas refinery marks one of Reliance Industries’ largest overseas energy bets in recent years and signals renewed cooperation between American and Indian energy sectors. Construction expected this year will determine whether the United States finally expands its refining capacity after decades without a new facility.
