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US to Get New Oil Refinery Backed by India’s Reliance Industries

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Bala Augie
Bala Augiehttps://moneycentral.com.ng
Bala is the Editor of MoneyCentral Media. Bala is a Fellow (FCA) of the Institute of Chartered Accountants in Nigeria (ICAN) and holds a Bsc in Accounting from the University of Abuja. Bala has over 12 years’ experience in the financial journalism landscape with specialization in the Insurance, markets and Finance sectors.
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President Donald Trump said the US will get its first new oil refinery in 50 years with the help of investment from India’s Reliance Industries Limited.

“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 Tuesday in a post on Truth Social.

The company plans to break ground on the new refinery in the second quarter of this year and has already signed a 20-year agreement to sell the fuels it produces, according to a Tuesday statement from America First Refining. The sales deal was made with Reliance.

The Trump administration is pursuing a policy of US energy dominance, which promotes increased production of oil, natural gas and coal. But while US oil output has surged over the past decade and a half on the back of the shale revolution, the nation relies on an aging array of refineries. Several of the plants have also shut down in recent years, adding to tightness in processing capacity.

The Brownsville refinery will be designed to run entirely on US shale oil, America First said Tuesday.

Partners in India and their largest privately held energy company, Reliance, made a “tremendous” investment in the project, according to Trump.

AFR also signed a binding 20-year offtake term sheet with the global supermajor.

The company plans to formally break ground on the new refinery in Q2 2026.

“It is because of our America First Agenda, streamlining Permits, and lowering Taxes, that have attracted Billions of Dollars in Deals coming back to our Nation,” Trump said. “A new Refinery at the Port of Brownsville, will fuel U.S. Markets, strengthen our National Security, boost American Energy production, deliver Billions of Dollars in Economic impact, and will be THE CLEANEST REFINERY IN THE WORLD.

“It will power Global Exports, and bring THOUSANDS of long overdue Jobs and Growth to a Region that deserves it,” the president continued. “This is what AMERICAN ENERGY DOMINANCE looks like. AMERICA FIRST, ALWAYS!”

Under the newly signed agreement, 1.2 billion barrels of U.S. light shale oil will be purchased and processed, a value of $125 billion; AFR will produce 50 billion gallons of refined products, a value of $175 billion; and the U.S. trade imbalance will improve by $300 billion, according to AFR.

The refinery is specifically engineered to process American light shale oil (47° API), which is cleaner, more efficient and less costly to process than heavier imported crude.

Unlike many existing U.S. refineries that depend on foreign oil, the facility will not require imported crude, which strengthens U.S. national and economic security.

Key advantages of the refinery include the capacity to process 60 million barrels per year of 100% U.S. light shale oil, a strategic location at a deep-water U.S. port, enabling distribution to domestic and international markets and the production of some of the cleanest gasoline, diesel and jet fuel refined at scale in the U.S.

From 2014 to 2024, the U.S. exported nearly 10 billion barrels of crude, while still importing roughly 28 billion barrels, costing American consumers and workers more than $1.8 trillion.

Beyond industrial growth, the company’s website notes it will drive community engagement through educational partnerships and apprenticeships designed to foster long-term social equity and economic stability in the area.

“This project represents a historic step forward for American energy production,” said John V. Calce, chairman and founder of America First Refining. “For the first time in half a century, the United States will build a new refinery designed specifically for American shale oil. Thanks to President Trump’s leadership and the resurgence of an America First energy policy, we are creating thousands of high-quality jobs while ensuring more of our nation’s energy resources are refined here at home in the cleanest, most efficient refinery on the planet.”

CEO Trey Griggs added the U.S. has a surplus of light shale oil but a shortage of refining capacity designed to process it.

“By building this refinery at the Port of Brownsville, we’re unlocking a major expansion of American energy production while creating thousands of high-paying jobs and strengthening our domestic supply chain,” said Griggs, who previously held top leadership positions at major corporations, including Calpine and Goldman Sachs.



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