U.S. Plans First New Oil Refinery in 50 Years with Investment from Reliance Industries
The United States could soon see its first newly constructed oil refinery in nearly five decades. A project planned for Brownsville, Texas, backed by investment from India’s Reliance Industries, aims to process 168,000 barrels per day of U.S. shale oil.
The refinery project is being led by America First Refining (AFR) and could begin construction as early as Q2 2026. The facility is designed to process light shale crude produced in the United States, primarily from regions such as the Permian Basin, and convert it into refined fuels for domestic consumption and export.
According to AFR, the refinery will process approximately 1.2 billion barrels of U.S. shale oil, valued at about $125 billion, and produce 50 billion gallons of refined products estimated to be worth $175 billion over the life of the project.
U.S. President Donald Trump described the initiative as a “historic $300 billion deal”, emphasizing its potential to strengthen energy security, increase domestic production, and deliver significant economic impact.
While the $300 billion figure represents the projected value of crude processed and refined products produced over time, industry analysts estimate the actual construction cost of the refinery could range between $3 billion and $4 billion.
The project also includes a 20-year offtake agreement with a global supermajor, ensuring long-term commitments to purchase and distribute refined fuels produced at the facility.
Reliance Industries, controlled by billionaire Mukesh Ambani, brings significant refining expertise to the project. The company operates the world’s largest refining complex in Jamnagar, India, giving it extensive experience in large-scale refining operations and export logistics.
If completed, the Brownsville refinery would mark the first major grassroots refinery built in the United States since the late 1970s, reflecting growing interest in expanding domestic refining capacity as U.S. shale production remains strong and global fuel demand continues to rise.
The location at the Port of Brownsville also positions the facility to serve export markets in Latin America and beyond, supporting the U.S. role as a major supplier of refined petroleum products.
