Reliance to partner in first new US oil refinery project in 50 years

Billionaire industrialist Mukesh Ambani’s Reliance Industries is set to participate in the development of what could become the first major new oil refinery built in the United States in nearly five decades. The announcement was made by US. President Donald Trump, who described the project as the “largest refinery deal in US history.”

The refinery is planned at the Port of in Brownsville, Texas, and will be designed to process light crude derived entirely from US shale oil. The project is being led by energy developer America First Refining (AFR), which confirmed that a global energy major has committed significant investment and entered into a long-term commercial agreement tied to the facility’s output.

Although AFR did not name its partner directly, President Trump identified Reliance Industries in a post on the social media platform Truth Social, calling the arrangement a “historic $300 billion deal.” Reliance has not yet issued an official statement regarding the announcement. Groundbreaking for the refinery is expected to take place in the second quarter of 2026. Industry analysts estimate the project could require capital expenditure of roughly $4 – 5 billion, though official financial details and completion timelines have not been disclosed.

The facility will be engineered to run entirely on American light shale crude, reflecting the shift in US energy production over the past decade. According to AFR, a binding 20-year off-take agreement has been signed with the international partner, committing it to purchase and distribute fuels produced at the refinery.

The agreement includes the purchase and processing of approximately 1.2 billion barrels of US shale oil — valued at about $125 billion —over the contract period. AFR also plans to produce roughly 50 billion gallons of refined petroleum products worth an estimated $175 billion.

In total, the project is projected to contribute about $300 billion toward reducing the US trade deficit through domestic energy production and exports.

If completed, the Brownsville refinery would become the first major US refining facility built from scratch since the Garyville refinery in Louisiana developed by Marathon Petroleum began operations in 1977.

President Trump highlighted the economic and strategic impact of the project, stating that the refinery would strengthen US energy security, increase domestic fuel production, and generate significant economic activity in South Texas.

The project site was originally proposed by Element Fuels, which completed site preparation and permitting work in 2024 for a hydrogen-powered refinery complex capable of processing around 160,000 barrels of crude per day. John Calce, founder and chief executive of Element Fuels, now leads America First Refining.

For Reliance Industries, the project would represent its first refinery investment in the United States. The Indian conglomerate currently operates the world’s largest refining complex in Jamnagar, with a processing capacity of about 1.24 million barrels of crude oil per day.

Reliance already maintains a strong commercial presence in the US through energy trading, crude sourcing, and technology partnerships. The company has previously invested in US shale gas assets and continues to market refined fuels in the American market.

Its broader ties with the US corporate sector have also deepened in recent years. Technology giants Meta Platforms and Google have invested in Jio Platforms, while private equity firm General Atlantic holds a stake in Reliance Retail Ventures.

The refinery announcement comes at a time of heightened volatility in global oil markets amid escalating geopolitical tensions, including the ongoing conflict involving Israel and Iran. Policymakers in Washington are exploring measures to stabilise energy prices and boost domestic supply.

According to the US Energy Information Administration, the United States currently operates about 132 oil refineries with a combined processing capacity of roughly 18.4 million barrels per day. Most of these facilities were built decades ago and are configured to handle heavier crude imports, particularly from countries such as Venezuela and Canada, rather than the lighter crude produced from US shale formations.

The proposed Brownsville refinery is expected to address this imbalance by focusing specifically on processing domestically produced shale oil, aligning refining infrastructure more closely with the evolving profile of American crude production.