President Donald Trump announced Tuesday that the U.S. will get its first oil refinery in 50 years, funded by investments from Indian billionaire Mukesh Ambani’s Reliance Industries.
“THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY,” Trump said in a post on Truth Social.
He thanked India’s largest privately held energy company, Reliance Industries, “for this tremendous Investment.”
Reliance owns the world’s largest oil refinery in Jamnagar, India, and has a market capitalization of $206 billion, according to LSEG data.
The new refinery, located at the port of Brownsville in Texas, will “strengthen our National Security, boost American Energy production, deliver Billions of Dollars in Economic impact, and will be THE CLEANEST REFINERY IN THE WORLD,” Trump said.
The refinery is designed to process 100% American shale oil and is being developed by America First Refining.
20-year deal
The refinery’s opening coincides with elevated global oil prices driven by the intensifying conflict in the Middle East. Since the start of the U.S.-Israel war on Iran, the prices of crude have been volatile, hitting nearly $120 on Monday. Higher fuel prices are beneficial for shale refiners.
U.S. crude oil was up 1.15% up $84.71 per barrel at 10:38 p.m. ET. Brent crude, the global benchmark, rose 1.33% at $88.98.
Reliance Industries and America First Refining did not respond to a request for comment.
America First Refining said in a statement Tuesday that it received a “9-figure investment from a global supermajor at a 10-figure valuation,” without giving any further details about the investors.
The “same global supermajor” has also signed a 20-year deal to purchase, process, and distribute shale oil sourced and produced stateside, America First Refining added.
The refinery will process 1.2 billion barrels of U.S. light shale oil, valued at $125 billion, and produce 50 billion gallons of refined products worth $175 billion.
“The United States has a surplus of light shale oil but a shortage of refining capacity designed to process it,” said Trey Griggs, president of America First Refining. The refinery, he added, would strengthen the domestic supply chain. (CNBC)
