First new US oil refinery in 50 years set for construction in Texas, Trump says
FILE. A pumpjack sits on the outskirts of town (Photo by Spencer Platt/Getty Images / Getty Images)
BROWNSVILLE, Texas - The first new oil refinery to be built on U.S. soil in half a century is set for construction in Texas, the president announced Tuesday.
America First Refining (AFR) plans for the $300 billion Brownsville plant to produce and refine billions of gallons of refined oil and generate thousands of jobs in Texas.
America First refinery in Texas
What we know:
The project is situated in a massive deep-water foreign trade zone and will leverage advanced infrastructure and strategic rail and sea connections to transport low-carbon fuels and other energy products, FOX Business reports.
The company plans to formally break ground on the new refinery in Q2 2026.
AFR said the refinery will generate thousands of construction and permanent jobs, while offering wages that exceed market averages.
Partners in India and their largest privately held energy company, Reliance, made a "tremendous" investment in the project, according to Trump.
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20-year refining agreement
AFR also signed a binding 20-year offtake term sheet with the global supermajor.
Under the newly signed agreement, 1.2 billion barrels of U.S. light shale oil will be purchased and processed, a value of $125 billion; AFR will produce 50 billion gallons of refined products, a value of $175 billion; and the U.S. trade imbalance will improve by $300 billion, according to AFR.
The refinery is specifically engineered to process American light shale oil (47° API), which is cleaner, more efficient and less costly to process than heavier imported crude.
Unlike many existing U.S. refineries that depend on foreign oil, the facility will not require imported crude, which strengthens U.S. national and economic security.
Key advantages of the refinery include the capacity to process 60 million barrels per year of 100% U.S. light shale oil, a strategic location at a deep-water U.S. port, enabling distribution to domestic and international markets and the production of some of the cleanest gasoline, diesel and jet fuel refined at scale in the U.S.
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Lawmakers weigh in
What they're saying:
"America is returning to REAL ENERGY DOMINANCE! Today I am proud to announce that America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas," Trump said in a post to Truth Social. "THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY, A MASSIVE WIN for American Workers, Energy, and the GREAT People of South Texas!
"Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment. It is because of our America First Agenda, streamlining Permits, and lowering Taxes, that have attracted Billions of Dollars in Deals coming back to our Nation.
"A new Refinery at the Port of Brownsville, will fuel U.S. Markets, strengthen our National Security, boost American Energy production, deliver Billions of Dollars in Economic impact, and will be THE CLEANEST REFINERY IN THE WORLD. It will power Global Exports, and bring THOUSANDS of long overdue Jobs and Growth to a Region that deserves it. This is what AMERICAN ENERGY DOMINANCE looks like. AMERICA FIRST, ALWAYS!"
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"As the lead Democrat to vote to lift the ban on United States oil exports in 2015, I’m pleased that the first major oil refinery built in the U.S. in nearly 50 years is coming to the Port of Brownsville," said U.S. Rep. Henry Cuellar (D-Texas) in a later post to X, formerly Twitter. "This investment will increase domestic energy security while supporting thousands of good-paying jobs in South Texas.
"Adding refining capacity here at home helps our workers, reinforces supply chains, and delivers for the economy. The project is expected to process up to 1.2 billion barrels of U.S. light shale oil from the Permian Basin in West Texas, improving the U.S. trade balance by an estimated $300 billion. I’ll continue advocating for commonsense energy policies that enhance national security and create economic opportunity in South Texas."
The Source: Information in this article comes from FOX Business, President Donald Trump and U.S. Rep. Henry Cuellar.