Trump announces first new US oil refinery in 50 years with Reliance investment

Donald Trump on Tuesday announced plans to build a major oil refinery in Brownsville, Texas, with investments from Mukesh Ambanji's Reliance Industries Ltd, describing the project as the first new refinery in the United States in half a century and a significant boost for the country’s energy sector.

In a post on his Truth Social platform, Trump said the facility would be developed in partnership with India’s largest privately held energy company, Reliance Industries, and would mark a major milestone in his administration’s push for “energy dominance”.

“America is returning to real energy dominance,” Trump wrote, adding that the refinery in Brownsville would fuel domestic markets, strengthen national security and expand US energy production.

The project is being led by America First Refining, which said the refinery would be constructed at the Port of Brownsville in Brownsville, Texas. According to the company, construction is expected to begin in the second quarter of 2026.

Trump said the development would generate billions of dollars in economic activity and create thousands of jobs in the region, which he described as long overdue for investment and growth.

He also credited his administration’s economic policies, including tax reductions and streamlined permitting processes, for attracting large-scale investment back to the United States.

The president described the agreement as a historic $300 billion deal, calling it the largest of its kind in US history and a major victory for American workers and the energy industry.

John V Calce, chairman and founder of America First Refining, said the refinery represented “a historic step forward for American energy production”.

Moneycontrol said that a statement from Reliance Industries regarding its involvement in the project had not been released at the time of reporting.

The announcement comes amid rising tensions in West Asia following an expansion of the conflict involving Iran. Tehran has reportedly launched retaliatory missile and drone attacks targeting US military installations, diplomatic missions and energy infrastructure across several Gulf states, including United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Bahrain and Jordan.

The conflict has also disrupted global energy markets, particularly around the Strait of Hormuz, a crucial maritime corridor through which roughly one-fifth of the world’s oil supply passes.

During a press briefing on Tuesday, Karoline Leavitt said recent increases in oil and gas prices were temporary and would decline once the objectives of the US military campaign known as Operation Epic Fury were achieved.

Leavitt told reporters that once national security goals were met, Americans could expect fuel prices to fall rapidly, potentially to levels lower than those recorded before the operation began. She added that the effort aimed to ensure that Iran could no longer threaten the United States or its allies with a nuclear weapon.

With IANS inputs