US to get $300 billion oil refinery with Reliance industries' investment: Key details of deal

The refinery project will be developed by America First Refining at Brownsville and the project will also involve investment from India’s Reliance Industries.

Updated on: Mar 11, 2026, 21:39:32 IST

Edited by Shivya Kanojia

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US President Donald Trump has announced that the United States will see the construction of its first new oil refinery in five decades, describing the development as a major step for the country’s energy sector.

The refinery project will be developed by America First Refining at Brownsville, Texas. (Bloomberg)

The refinery project will be developed by America First Refining at Brownsville, Texas. According to the announcement, the project will also involve investment from India’s Reliance Industries.

Investment and timeline of the refinery project

The refinery plan has gained momentum in recent months. In February, America First Refining secured a nine-figure investment from a global energy major at a ten-figure valuation, providing a financial boost to the project, according to a press release.

Also read| Trump announces 'historic' $300 billion oil refinery in Texas, thanks Reliance

Alongside the investment, the company also signed a binding 20-year offtake agreement with the same partner. This agreement ensures long-term commitments for the purchase, processing and distribution of energy products produced in the United States.

Under the arrangement, the energy processed at the refinery will be sourced entirely from American shale oil, with the partner committed to handling its distribution over the long term.

According to the company’s plans, construction is expected to begin in the second quarter of 2026, marking the official start of the project.

Details of the energy agreement

The agreement tied to the refinery has been described by the company as the largest energy deal in US history, involving large-scale commitments in crude processing and refined product output, according to the press release.

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.
Production of 50 billion gallons of refined petroleum products, valued at $175 billion.
An expected $300 billion improvement in the US trade imbalance.

These commitments form the backbone of the refinery’s long-term operational plan.

Structure and design of the refinery

The planned facility is being designed specifically to process American light shale oil with a 47° API, which the company says is cleaner and more efficient to refine compared with heavier imported crude.

Unlike several existing refineries in the United States that rely partly on imported crude oil, this refinery is expected to run entirely on domestically produced oil, reducing reliance on foreign supplies.

Developers highlight several structural and operational features of the refinery:

Capacity to process around 60 million barrels of US light shale oil annually
Strategic location at a deep-water port, allowing both domestic distribution and international exports
Large-scale production of gasoline, diesel and jet fuel
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.

Economic impact and regional development

Data cited in the project announcement shows that between 2014 and 2024, the United States exported nearly 10 billion barrels of crude oil while importing about 28 billion barrels during the same period. According to project details, this imbalance cost American consumers and workers more than $1.8 trillion.

Once operational, the refinery is expected to redirect up to 60 million barrels of US crude each year into domestic refining, which developers say could support American industry and strengthen energy security.

ABOUT THE AUTHOR
Shivya Kanojia
Shivya Kanojia is a journalist at Hindustan Times, where she works in the fast-paced digital news ecosystem with a strong sense of editorial judgement and a clear understanding of what makes a story both important and traffic-driven. An alumna of the Indian Institute of Mass Communication (IIMC), Shivya brings a thoughtful balance of news value and audience relevance to her work, ensuring stories resonate beyond the immediate headline. Over the course of her three-year journey in the digital news space, Shivya has worked across a wide range of beats, including politics, civic issues, human-interest features and trending news. This diverse exposure has shaped her ability to approach stories with nuance, adaptability and context, whether she is breaking down complex developments or spotlighting everyday narratives that often go unnoticed. She is particularly drawn to human-interest stories, interviews and explainers that offer depth and clarity, aiming to move past surface-level reporting to explore the people, emotions and circumstances behind the news. Prior to joining Hindustan Times, Shivya worked with Firstpost and Times Now, where she covered a broad spectrum of topics and honed her skills in digital journalism . Outside the newsroom, Shivya enjoys discovering new cafés, drawn to good coffee, cosy spaces and unhurried conversations. Shopping is another pastime she cherishes, not always out of necessity, but often guided by instinct and the simple joy of stumbling upon unexpected finds. Above all, she treasures time spent with loved ones, finding meaning in shared laughter, simple moments and memories that linger long after.Read More

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