President Donald Trump on Tuesday announced plans for a proposed $300 billion oil refinery in Brownsville, Texas, saying the project would be backed by Indian billionaire Mukesh Ambani‘s Reliance Industries.
Trump took to Truth Social on Tuesday to announce the opening of the first new U.S. oil refinery in 50 years, as part of an effort to boost domestic energy production and deepen economic ties with global partners.
The refinery, being developed by America First Refining, is designed to process 100% U.S. shale oil. According to the Indian Express, the construction is expected to begin in the April–June quarter this year.
“THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY,” Trump wrote.
The president lauded India and Reliance for their substantial investment, but did not elaborate on whether the refinery was part of a broader pact with India. He hailed the project as a significant step for the U.S. energy sector and a resurgence of “REAL ENERGY DOMINANCE.”
Trump also asserted that the proposed facility would be the “cleanest refinery in the world,” generating billions in economic impact and creating thousands of jobs in South Texas.
Trump credited his administration’s policies, including the America First Agenda, streamlined permits, and lower taxes, for the massive investment in the U.S. energy sector. He expressed optimism that the project would drive global exports and stimulate long-awaited economic growth in the region.
A 20-Year Agreement
Without naming Reliance, America First Refining stated that it secured a “9-figure investment from a global supermajor at a 10-figure valuation,” and signed a 20-year agreement with the same partner to purchase, process, and distribute U.S. shale oil.
The refinery will process 1.2 billion barrels of light shale crude to boost U.S. refining capacity and strengthen the domestic energy supply chain. Trey Griggs, the president of America Refining, said the U.S. has a surplus of light shale oil but limited refining capacity to process it, adding that the new refinery would help strengthen the domestic supply chain.
Oil Volatility Amid Middle East War
The refinery is opening amid volatile oil markets driven by the escalating Middle East conflict, with crude briefly crossing $100 per barrel over the weekend. Prices rose again on Wednesday despite plans for a historic emergency reserve release and earlier easing to $85 per barrel on Tuesday, after Trump suggested the war could soon end.
When last checked, WTI crude oil is trading 4.37% higher at $87.11. Notably, higher fuel prices typically benefit shale refiners.
In October, after the U.S. imposed sanctions on Russia’s largest oil companies, Rosneft and Lukoil, Reliance Industries—India’s biggest buyer of Russian crude and owned by Ambani- moved to cut or suspend shipments in line with guidance from the Indian government.
However, amid oil supply disruptions caused by the ongoing U.S.–Iran conflict, Treasury Secretary Scott Bessent said Washington had granted India a temporary 30-day waiver to purchase Russian oil cargoes already stranded at sea.
Meanwhile, the U.S. and India signed an interim trade deal in February, with further discussions underway to finalize a broader agreement.
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