Washington: US President Donald Trump has announced plans for the first new oil refinery to be built in the United States in nearly 50 years, saying the project will be developed in partnership with investment from Reliance Industries of India.
In a post on the social media platform Truth Social, Trump said the refinery will be constructed in Brownsville by a company named America First Refining. The facility, he said, would mark the first new refinery built in the country in half a century and would play a role in strengthening domestic energy infrastructure.
The announcement comes at a time when the White House is attempting to address concerns about rising fuel costs linked to tensions in the Middle East, particularly the conflict involving Iran. The administration has been considering multiple measures to stabilise oil markets, including releasing crude from emergency reserves and providing military escorts for tankers passing through the critical Strait of Hormuz.
The proposed refinery project was previously associated with Element Fuels, which had earlier begun groundwork at the site. In mid-2024, the company reported that it had secured necessary permits and completed preparations to build a facility capable of processing roughly 160,000 barrels of crude oil per day. The company’s website now redirects to that of America First Refining, the firm expected to lead the project.
According to details released by the company, construction is planned to begin in the second quarter of the year. America First Refining has also signed a long-term agreement with Reliance Industries for the sale of refined fuels produced at the plant, reportedly covering a period of 20 years.
The refinery is expected to process crude extracted from US shale reserves, aligning with the administration’s broader push for energy independence and increased domestic production.
Despite the growth in US oil output over the past decade, the country’s refining network largely consists of older facilities, many of which were built decades ago. Several plants have also closed in recent years, tightening refining capacity and raising concerns about the country’s ability to process rising volumes of crude.
Efforts to build entirely new refineries in the United States have historically faced challenges, including high construction costs, regulatory hurdles and opposition from environmental groups. Previous proposals, such as a large refinery project planned in Arizona during the mid-2000s, ultimately failed to move forward after developers struggled to secure adequate funding.
If completed as planned, the Brownsville refinery would represent one of the most significant additions to US refining infrastructure in decades and could play a role in reshaping the country’s energy landscape.
