President Donald Trump announced that the United States will build its first new oil refinery in 50 years in Brownsville, Texas, with support from India's Reliance Industries. The project, led by America First Refining, aims to boost US oil processing capacity. The announcement comes amid concerns over rising energy prices due to the war in Iran.
US President Donald Trump stated on Tuesday in a Truth Social post: “I am proud to announce that America First Refining is opening the FIRST new oil refinery in the United States in 50 YEARS in Brownsville, Texas”.
This project is the same one that Element Fuels was developing, which in June 2024 completed site preparation and received necessary permits for a plant capable of processing 160,000 barrels of oil per day. Element Fuels' website now redirects to America First Refining's. The company plans to start construction in the second quarter of this year and has signed a 20-year agreement to sell fuels with Reliance Industries.
Reliance Industries, owner of the world's largest refinery Jamnagar, previously collaborated with the Mexican government on the Dos Bocas project. On March 3, 2020, then-Energy Secretary Rocío Nahle visited Jamnagar to learn about equipment and experiences, identifying technical similarities such as parallel production trains and coking plants.
Although Reliance did not invest in Dos Bocas, it is in talks to invest in the Texas refinery, according to a person familiar with the plan. Reliance did not immediately respond to requests for comment, and the White House referred questions to the Department of Energy, which has not provided further details.
The announcement comes as the White House addresses rising energy prices due to the war in Iran, considering options like releasing emergency reserves and military escorts for tankers in the Strait of Hormuz. The Brownsville refinery will operate entirely on US shale oil, aligning with Trump's energy dominance policy, which promotes increased production of oil, natural gas, and coal.
However, the United States relies on obsolete refineries, some recently closed, exacerbating processing capacity shortages. Previous efforts for new refineries have failed due to high costs, complex permitting requirements, and environmental opposition, such as the Arizona Clean Fuels Yuma plan in the 2000s, which failed to attract sufficient funding.
