President Donald Trump declared on Tuesday that the U.S. will get its first oil refinery in 50 years, funded by investments from Indian billionaire Mukesh Ambani’s Reliance Industries.
Trump said in a post on Truth Social, “THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY.”
He thanked India’s biggest privately held energy company, Reliance Industries, “for this tremendous Investment.”
According to LSEG data, Reliance owns the world’s major oil refinery in Jamnagar, India, and has a market capitalization worth up to $206 billion.
Trump stated that the new refinery, which is situated at the port of Brownsville in Texas, will “strengthen our National Security, boost American Energy production, deliver Billions of Dollars in Economic impact, and will be THE CLEANEST REFINERY IN THE WORLD.”
Therefore, the refinery will handle 100 percent American shale oil and will be developed by America First Refining.
The refinery’s opening, accompanied by elevated global oil prices caused by the intensifying conflict in the Middle East. The prices of crude have been fluctuating since the U.S.-Israel war on Iran began, reaching close to $120 per barrel on Monday. An increase in fuel prices is advantageous to shale refiners.
Meanwhile, U.S. crude oil was up 1.15 percent to $84.71 per barrel at 10:38 p.m. ET. Brent crude, the global benchmark, surged 1.33 percent at $88.98. Reliance Industries and America First Refining did not respond to a request for comment.
In a statement on Tuesday, America First Refining reported that it received a “9-figure investment from a global supermajor at a 10-figure valuation,” without giving any further details about the investors.
America First Refining stated that the “same global supermajor” has signed a 20-year agreement to purchase, process, and distribute shale oil sourced and produced stateside.
The refinery will begin by 1.2 billion barrels of U.S. light shale oil, valued at $125 billion, and produce 50 billion gallons of refined products worth $175 billion.
“The United States has a surplus of light shale oil but a shortage of refining capacity designed to process it,” said Trey Griggs, President of America First Refining. The refinery would boost the domestic supply chain.
