US President Donald Trump announced Tuesday a historic $300 billion partnership with India's Reliance Industries to build America's first new oil refinery in 50 years. The facility will be located at the Port of Brownsville in Texas and will be operated by America First Refining.

Trump made the announcement on his Truth Social platform, calling it "THE BIGGEST IN U.S. HISTORY, A MASSIVE WIN for American Workers, Energy, and the GREAT People of South Texas." He thanked "our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment."

Project Details and Capacity

The Brownsville refinery is designed to process 100% American shale oil and will have the capacity to handle 160,000 barrels of oil daily, according to project details. America First Refining plans to break ground on the new refinery in the second quarter of 2026.

The facility will process 1.2 billion barrels of US light shale oil valued at $125 billion over its operational period and produce 50 billion gallons of refined products worth $175 billion. The refinery is specifically engineered to process American light shale oil, which is cleaner, more efficient, and less costly to process than heavier imported crude.

America First Refining received a "9-figure investment from a global supermajor at a 10-figure valuation" in February 2026, though the company did not specify the investor's identity in its statement. The same investor has also signed a binding 20-year agreement to purchase, process, and distribute shale oil sourced and produced in the United States.

Economic and Strategic Impact

Trump described the refinery as strengthening national security, boosting American energy production, and delivering billions of dollars in economic impact. He claimed the facility would be "THE CLEANEST REFINERY IN THE WORLD" and would create thousands of jobs in South Texas.

The project addresses a key challenge in the US energy sector. Trey Griggs, president of America First Refining, stated that "The United States has a surplus of light shale oil but a shortage of refining capacity designed to process it." The refinery would strengthen the domestic supply chain by redirecting up to 60 million barrels of US crude annually back into domestic refining.

From 2014 to 2024, the United States exported nearly 10 billion barrels of crude while importing roughly 28 billion barrels, costing American consumers and workers more than $1.8 trillion, according to America First Refining. The company stated that "The US trade imbalance will improve by $300 billion" through this project.

Timing and Market Context

The announcement comes during a period of elevated global oil prices driven by intensifying conflict in the Middle East. Since the start of the US-Israel war on Iran, crude oil prices have been volatile, hitting nearly $120 per barrel on Monday. The conflict began on February 28 with joint US-Israel strikes that killed Iran's Supreme Leader Ayatollah Ali Khamenei.

The conflict has affected the Strait of Hormuz, a critical shipping route through which nearly 20% of the world's oil supply passes, further disrupting global energy markets. Iran has launched attacks on Israeli and US-linked targets across several Gulf countries in response to the strikes.

White House spokesperson Karoline Leavitt addressed concerns over rising fuel prices, stating that "recent increase in oil and gas prices is temporary and this operation will result in lower gas prices in the long term. Once the national security objectives of Operation Epic Fury are fully achieved, Americans will see oil and gas prices drop rapidly, potentially even lower than they were prior to the start of the operation."

Company Background and Previous Development

Reliance Industries owns the world's largest oil refinery in Jamnagar, India, and has a market capitalization of $206 billion. The company operates the world's largest single-location refining complex in Gujarat's Jamnagar.

The Texas refinery project was previously being developed by Element Fuels, which announced in June 2024 that it had completed site preparation and received necessary permits to construct the plant. Element Fuels' web address now redirects to the website for America First Refining, and Element Fuels's Founder and Chairman John V. Calce holds the same position at America First Refining.

Trump attributed the project's viability to his administration's policies, stating "It is because of our America First Agenda, streamlining Permits, and lowering Taxes, that have attracted Billions of Dollars in Deals coming back to our Nation." The announcement aligns with the Trump administration's pursuit of "energy dominance," which supports expanding production of oil, natural gas and coal.

The last major refinery built in the United States was the Marathon Refinery, constructed in 1976. The proposed Brownsville location at the port suggests the refinery could be export-oriented, as the facility is designed to power global exports according to Trump's announcement.

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