Trump unveils first US refinery in 50 years with Reliance deal

Dubai: President Donald Trump has announced plans for the first new oil refinery to be built in the US in half a century, with financial backing from Reliance Industries, in a move that could reshape domestic fuel processing capacity amid heightened volatility in global energy markets.

The refinery will be constructed in Brownsville, Texas, near the US-Mexico border, and will process crude oil produced from American shale fields. Trump revealed the project in a post on Truth Social, stating that the facility would represent the first new refinery built in the country in 50 years.

“I am proud to announce that America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas,” Trump said.

The announcement comes as fuel prices are climbing amid geopolitical tensions in the Middle East, including the war involving Iran, which has raised concerns about potential disruptions to global oil supply routes.

A strategic push to expand refining capacity

Plans indicate that the refinery will be developed by America First Refining and will have the capacity to process around 168,000 barrels of crude oil per day. Construction is expected to begin in the second quarter of this year.

The facility traces its origins to an earlier project pursued by Element Fuels, which secured permits and completed site preparation in 2024 before the development was taken over by America First Refining.

The plant is set to address structural gaps in the United States refining system, which largely relies on facilities built decades ago and designed to process heavier crude oil imported from abroad.

John V. Calce, chairman and founder of America First Refining, said the project will mark a turning point in the country’s energy infrastructure.

“This project represents a historic step forward for American energy production,” Calce said. “For the first time in half a century, the United States will build a new refinery designed specifically for American shale oil.”

Many refineries along the US Gulf Coast were configured in previous decades to process heavier and more sulfur-rich crude imported from overseas. Rapid growth in shale production has created a mismatch between the types of crude produced domestically and the processing facilities available to process them.

Developers say the Brownsville refinery will run entirely on US shale oil, a shift that could strengthen domestic supply chains while reducing reliance on imported crude.

Reliance steps in with long-term supply deal

Reliance Industries, India’s largest private-sector company, is backing the project with what America First Refining described as a nine-figure investment tied to a ten-figure valuation.

Trump thanked Reliance for its role in the project and confirmed the Indian conglomerate will also act as a long-term buyer of the fuels produced by the refinery.

A binding agreement has been signed that will see Reliance purchase the facility’s refined products for 20 years, providing a stable commercial foundation for the development.

Reliance operates one of the world’s largest refining complexes in Jamnagar, India, and has extensive interests across petrochemicals, retail, digital services, and energy transition technologies. The company reported revenue of about $125 billion in 2025.

Policy push behind the project

The refinery announcement aligns with the Trump administration’s strategy of promoting what it calls American energy dominance. The policy framework prioritises increased domestic production of oil, natural gas and coal while reducing dependence on foreign energy supplies.

US oil output has surged over the past 15 years due to the shale boom, yet refinery construction has remained largely stagnant. Environmental regulations, high capital costs and complex permitting processes have discouraged companies from building entirely new facilities.

Industry estimates suggest the cost of constructing a refinery of this size could reach roughly $6.7 billion based on average construction expenses of around $40,000 per barrel of refining capacity.

Existing refining capacity in the US stood at about 18.4 million barrels per day at the end of 2024, according to the US Energy Information Administration.

The capacity is expected to expand gradually over the coming decade through upgrades and incremental additions to existing facilities rather than new greenfield projects.

Groundbreaking on the Brownsville refinery is expected later this year, marking the first attempt in decades to expand the United States refining network with a brand-new facility.

- With inputs from agencies.