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. 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.
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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.