U.S. President Donald Trump has announced a landmark $300 billion refinery project in Brownsville, Texas, marking the first new refinery in the United States in half a century. The initiative, backed by Indian billionaire Mukesh Ambani’s Reliance Industries, aims to process exclusively American shale oil and significantly strengthen domestic energy infrastructure.
Trump described the deal as the largest in U.S. history, emphasizing its economic and strategic significance. “This investment will boost American energy production, create billions in economic value, and stand as the cleanest refinery in the world,” he stated on Truth Social. Reliance Industries, India’s largest private energy firm with a market capitalization of $206 billion, brings its global refinery expertise to this historic project. The company already operates the world’s largest oil refinery in Jamnagar, India.
The new Brownsville facility, developed by America First Refining, will process 1.2 billion barrels of U.S. light shale oil over its lifetime, valued at $125 billion. From this, it is projected to produce 50 billion gallons of refined products, generating an estimated $175 billion in total output. This expansion addresses the U.S. challenge of having abundant light shale oil but limited refining capacity tailored to process it efficiently.
The project also includes a 20-year supply and processing agreement, ensuring a steady distribution of shale oil produced domestically. America First Refining confirmed it received a “nine-figure investment from a global supermajor at a ten-figure valuation,” without disclosing the full identity of all stakeholders. The long-term deal is expected to solidify the domestic energy supply chain while supporting national energy security goals.
The refinery launch comes amid global oil price volatility, partly driven by escalating Middle East tensions. Crude oil prices have surged, reaching nearly $120 per barrel, creating favorable conditions for shale-focused refining. At the announcement, U.S. crude was trading at $84.71 per barrel, while Brent crude stood at $88.98.
Trey Griggs, president of America First Refining, highlighted the strategic importance of the facility, stating that it would reinforce the domestic energy infrastructure, create significant economic benefits, and help the United States fully capitalize on its shale oil resources. This project is being hailed as a transformative step in U.S. energy production and refining capability.
