Trump says Reliance backing first US refinery in 50 years
What's the story
US President Donald Trump has announced the construction of the country's first new oil refinery in 50 years. The project, Trump said, will be funded by Indian billionaire Mukesh Ambani's Reliance Industries. The investment amount is unclear as of now. "This is a historic $300 billion deal—the biggest in US history," Trump said on Truth Social, calling it a "landmark agreement." The facility will run entirely on American shale oil and is being developed by America First Refining (AFR).
Investment details
Project to enhance national security, says Trump
The upcoming refinery will be located at the port of Brownsville in Texas. Trump said that the project would enhance national security, increase US energy output, and generate billions of dollars in economic activity. He also claimed it would be "the cleanest refinery in the world." Reliance has also signed "a binding 20-year offtake term sheet" with America First meaning the company will buy products the refinery produces.
Project timeline
Groundbreaking ceremony at Port of Brownsville in April
The groundbreaking ceremony at the Port of Brownsville is expected to take place in April. The refinery will process American light shale oil sourced from the Permian Basin in West Texas. According to the AFR, the $300 billion figure mentioned by Trump stems from a projection that the refinery will process 1.2 billion barrels of shale oil (valued at $125B) into 50 billion gallons of refined products (valued at $175B), resulting in a $300B boost to the US trade balance.
Production capacity
Project to improve regional infrastructure
Once operational, the refinery is expected to produce gasoline, diesel, and jet fuel on a large scale using advanced technologies aimed at improving efficiency and enabling cleaner production. The plant will rely exclusively on shale oil produced in the United States. The project is also expected to improve regional infrastructure and further strengthen the Port of Brownsville's role as a major center for energy manufacturing and logistics.