Brownsville: US President Donald Trump announced plans for the United States to construct its first new oil refinery in five decades, with significant investment from Indian billionaire Mukesh Ambani’s Reliance Industries. Trump labeled the project a ‘historic $300 billion deal – the biggest in U.S. history’ in a post on his Truth Social platform, expressing gratitude to Reliance Industries for their involvement.

According to Anadolu Agency, the refinery is set to be constructed at the port of Brownsville, Texas, and will exclusively process American shale oil. Trump emphasized that the project aims to bolster US national security, enhance domestic energy production, and generate substantial economic benefits, while also aspiring to be ‘the cleanest refinery in the world.’

Reliance Industries, known for operating the world’s largest refinery complex in Jamnagar, India, boasts a market capitalization of approximately $206 billion. This announcement coincides with heightened volatility in global oil markets due to escalating conflicts in the Middle East. Earlier this week, crude prices surged near $120 per barrel before experiencing a slight decrease.

Currently, the US benchmark West Texas Intermediate crude is trading 2.4% higher at $85.2 per barrel, whereas international Brent crude futures have declined by 1.8% to $88 per barrel. The development of the refinery is being undertaken by America First Refining, which has secured a nine-figure investment from a global energy major at a 10-figure valuation, though the investor remains undisclosed.

America First Refining has also revealed that the same investor has committed to a 20-year agreement for purchasing, processing, and distributing US-produced shale oil. The company estimates that the facility will process approximately 1.2 billion barrels of US light shale oil, valued at $125 billion, and produce around 50 billion gallons of refined products worth approximately $175 billion.