Trump Announces First New U.S. Refinery in 50 Years With Reliance Industries

U.S. President Donald Trump announced plans to build the first major oil refinery in the United States in nearly 50 years, located at the Port of Brownsville, Texas, near the U.S.–Mexico border. The refinery will be developed by America First Refining and is designed to process American shale oil, a light crude widely produced in the U.S. This announcement has been promoted as a “historic $300 billion deal” by Trump, although the figure reflects projected economic impact rather than confirmed investment.

According to the announcement, Reliance Industries, led by billionaire Mukesh Ambani, is expected to play a significant role in the project. Reliance has reportedly signed a 20-year offtake agreement and will support the refinery with its expertise in refining and petrochemicals. However, the company has not publicly confirmed the details, investment scale, or legal structure of its involvement.

The refinery is projected to have a capacity of approximately 168,000 barrels per day (bpd), refining around 60 million barrels of U.S. shale oil annually. The facility is designed to process shale oil efficiently and will contribute to domestic energy supply as well as exports. Construction costs are estimated between $4 billion and $6.7 billion, reflecting the high expense of building modern refining infrastructure in the U.S.

Trump highlighted multiple benefits of the project, including reducing the U.S. trade deficit, supporting domestic oil production, and generating regional economic activity. He also emphasized job creation, calling the refinery a “massive win for American workers and energy security.” The refinery is strategically positioned to address recent refinery shutdowns in California, partially offsetting regional capacity losses.

Despite the announcement, some analysts have expressed caution. The U.S. Gulf Coast already has substantial refining capacity, and experts question whether domestic fuel demand justifies a new facility. There are also uncertainties about whether the refinery will primarily serve domestic markets or act as an export hub. Moreover, environmental, technological, and regulatory specifics have not been independently confirmed.

The announcement comes amid heightened oil market volatility due to geopolitical tensions involving Iran, contributing to rising gasoline and crude prices. The refinery has been framed as part of Trump’s “America First” agenda, emphasizing streamlined permits, lower taxes, and investment attraction.

Reliance Industries’ potential participation is significant because the company operates the world’s largest refining complex in Jamnagar, India, generating about $125 billion in revenue in 2025. Its refining and petrochemical expertise lends credibility to the project, positioning Reliance as a strategic international partner for the U.S. in this venture.