US President Donald Trump has announced the construction of its first new oil refinery in five decades, a major step for the country's energy sector.
The refinery project, developed by America First Refining at Brownsville, Texas, will involve investment from India's Reliance Industries.
The refinery plan has gained momentum in recent months, with America First Refining securing a nine-figure investment from a global energy major at a ten-figure valuation.
The company has signed a binding 20-year offtake agreement with the same partner, ensuring long-term commitments for the purchase, processing, and distribution of energy products produced in the United States.
Construction is expected to begin in the second quarter of 2026, marking the official start of the project.
The energy agreement tied to the refinery has been described as the largest energy deal in US history, involving large-scale commitments in crude processing and refined product output.
The key elements of the agreement include 1.2 billion barrels of US light shale oil to be purchased and processed, with an estimated value of $125 billion, and production of 50 billion gallons of refined petroleum products, valued at $175 billion.
The refinery is expected to improve the US trade imbalance by $300 billion and will be designed to process American light shale oil with a 47° API, which is cleaner and more efficient to refine compared with heavier imported crude.
The location at the Port of Brownsville is expected to play a key role in enabling efficient transport of both crude oil and refined fuels.
