Mukesh Ambani-led Reliance Industries (RIL) will partner in building the first new oil refinery in the United States in five decades. This is part of a mammoth $300-billion project planned at the Port of Brownsville in Texas, US President Donald Trump announced late Tuesday, calling it the “biggest in U.S. history.”
Announcing the project on his social media platform Truth Social, Trump said the refinery would be developed by America First Refining with investment support from Reliance Industries, India’s largest private sector company. “Today 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 wrote, describing the project as a “historic $300 billion dollar deal.” Trump did not mention the size of RIL’s investment in the project.
Reliance did not make any public disclosure about the investment till the time of going to the press. A company spokesperson did not respond to queries from FE.
The share price of Reliance Industries surged 1.75% in early trade, touching an intraday high of Rs 1,433.65 on the BSE. However, profit booking dragged the stock down to Rs 1,383.10 before it finally closed the session at Rs 1,391.10, down 1.27% from the previous close.
Strategic Drivers
The refinery, to be built at the Port of Brownsville on the US Gulf Coast, is expected to strengthen domestic fuel supply and expand American energy exports. Trump said the investment would significantly boost energy production while supporting economic growth in the region.
“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,” he said.
Trump also thanked India’s largest private energy company for participating in the project. “We thank our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment,” he said. The facility, he added, would be technologically advanced and environmentally efficient. Trump described it as “The cleanest refinery in the world.”
According to the US president, the project will generate substantial employment and economic activity in South Texas. “It will power Global Exports, and bring THOUSANDS of long overdue Jobs and Growth to a Region that deserves it,” he wrote.
Trump linked the investment to policy measures undertaken during his administration to encourage industrial investment. “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,” he said.
Unpacking the Deal Structure
According to a Bloomberg report, the refinery is being developed by Element Fuels and is designed to process around 160,000 barrels of crude oil per day. The project is expected to run entirely on American shale oil, marking a significant expansion of refining capacity in the United States, where no new major refinery has been built in about 50 years.