President Donald Trump announced Tuesday that the United States will build its first new oil refinery in half a century - and it's coming to South Texas.
Trump unveiled plans for the facility at the Port of Brownsville via Truth Social on Tuesday, praising what he described as a $300 billion deal, though the White House did not immediately provide details clarifying whether that figure refers to the refinery alone or a broader investment framework. The announcement comes as U.S. gasoline prices have jumped sharply in recent weeks amid the ongoing conflict with Iran, with oil briefly surging above $100 a barrel.
The company behind the project, America First Refining, announced it has signed a binding 20-year offtake agreement with a global energy supermajor, securing commitments to purchase, process, and distribute American-produced energy sourced exclusively from U.S. shale oil. The company expects to formally break ground in the second quarter of 2026.
Trump credited Indian energy giant Reliance Industries - owned by billionaire Mukesh Ambani and operator of the world's largest oil refinery in Jamnagar, India - with making a "tremendous investment" in the project. The refinery is designed to process 1.2 billion barrels of U.S. light shale oil valued at $125 billion, and produce 50 billion gallons of refined products worth $175 billion.
America First Refining did not explicitly name Reliance as its investment partner in its press release, and company executives directed questions to the press release when contacted for additional comment.
The company's website domain was registered July 17, 2025. Little additional public information about the firm was available beyond its website, which describes a "world-class team of industry veterans" leading the project.
Brownsville Mayor John Cowen praised the announcement, saying the project "represents one of the most significant energy infrastructure investments in the country." The Port of Brownsville said in a statement the project has been in development for more than 12 years.
Port officials said they anticipate approximately 300 full-time jobs once operational, with a potential groundbreaking ceremony in April. There are reports that President Trump and Texas Governor Greg Abbott may attend.
Energy analysts caution that even if construction begins as planned, any new refinery would take years to complete and would not provide immediate relief from current price pressures driven by the overseas conflict. Permitting details and the full financing structure have not been publicly disclosed.
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