CALGARY — US President Donald Trump announced on Tuesday that his country will be building its first oil refinery in five decades with investment from India’s Reliance Industries.In a post on Truth Social, Trump said the project is a “historic $300 billion deal, the biggest in US history,” adding that it was a “massive win for American workers, energy, and the great people of South Texas.”.The refinery — which will be built at the port of Brownsville, Texas — is expected to process 168,000 barrels per day (bpd) of crude oil and will strengthen domestic supply chains while reducing reliance on foreign refining capacity.The project is being developed by startup American First Refining and in a statement, the company’s chairman and founder John V. Calce said it’s being designed “specifically for American shale oil.”According to the company, the facility will process roughly 1.2 billion barrels of US light shale oil valued at $125 billion and produce roughly 50 billion gallons of refined products worth around $175 billion.American First added that a "global supermajor" has provided a "9-figure investment" at a "10-figure valuation.”The company also stated the same investor — revealed to be Reliance Industries by Trump — has signed a 20-year agreement to purchase, process, and distribute US-produced shale oil.Reliance, which operates the world’s largest refinery complex in Jamnagar, India, has a market capitalization of about $206 billion.The announcement comes as global oil markets have seen heightened volatility driven by the Iran conflict, with crude prices surging to nearly $120 per barrel earlier this week before the US benchmark West Texas Intermediate (WTI) eased to $87.07 at the time of writing..Reacting to the news, Texas Governor Greg Abbott said Texas’ “low regulations, strong economy, and geographic advantage on the Gulf of America make the Port of Brownsville the perfect location to build our nation’s newest oil refinery.”“Companies don't come to Texas despite our policies — they come because of them.”American First said it plans to break ground on the project in the second quarter of this year.
