Donald Trump has announced the construction of an historic, $300 billion oil refinery in Brownsville, Texas. Backed by Reliance, India’s largest privately held trading company, the first-of-its-kind plant would reportedly be the country’s first new oil refinery in 50 years.
Trump stated that the initiative would boost economic growth in the region, increase exports, and create thousands of jobs.
“Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous investment,” Trump posted on his social media platform, Truth Social.
America First Refining will build the plant at the Port of Brownsville, a deep water port. Described as the “1st and only refinery to process 100% American shale oil”, the company will produce 160,000 barrels of oil per day at 60 million barrels per year. The company claims it will produce “some of the cleanest fuels in the United States“, wherein it solely processes high-quality shale oil with hydrogen-sourced power.
The company reiterated Trump’s statements, pledging thousands of jobs and strong wages above market averages.
Under the terms of the deal, its major investor Reliance has signed a 20-year offset agreement to purchase and distribute the entire products of the refinery. The projected value of total economic impact over the next 20 years is $300 billion, through which the U.S. would reduce its trade deficit with India.
America First Refining plans to break ground on the refinery as soon as Q2 this year. The company aims for Phase 1 to be operational in 2027, starting production at around 50,000 barrels per day.
The Gulf Coast is presently home to 8 of the 10 largest refineries in the United States.
Reliance – Reliance Industries Limited (RIL) – is a multinational conglomerate headquartered in Mumbai, India. It is one of the world’s largest private sector corporations. The firm already operates the world’s largest refining complex in Jamnagar.
