US President Donald Trump has said the United States will see its first newly built oil refinery in 50 years, with support from investment linked to Reliance Industries. In a post on Truth Social on Tuesday, Trump said the project would be built in Brownsville, Texas.
“I am proud to announce that America First Refining is opening the FIRST new US Oil Refinery in 50 YEARS in Brownsville, Texas,” he wrote. The announcement came as the White House attempts to address concerns about rising energy prices linked to the ongoing conflict involving Iran.
Trump is considering several measures to reduce oil and gasoline costs, including releasing oil from emergency reserves and providing military escorts for tankers travelling through the Strait of Hormuz.
The Texas refinery is linked to a project previously developed by Element Fuels. The company said in June 2024 that it had completed site preparation and obtained permits to build a facility capable of processing around 160,000 barrels of oil per day.
Element Fuels’ website now redirects to the site of America First Refining, the company Trump said will build the new refinery.
According to a statement released on Tuesday by America First Refining, construction is expected to begin in the second quarter of this year. The company also said it had signed a 20-year agreement to sell the fuels produced at the facility.
The sales agreement is with Reliance Industries.
The Trump administration has promoted a policy of “US energy dominance”, aimed at increasing production of oil, natural gas and coal. Although US oil output has grown significantly over the past decade, largely due to the shale boom, the country’s refining system remains largely made up of ageing facilities.
Several refineries have also shut down in recent years, tightening the nation’s processing capacity. America First Refining said the Brownsville plant would be designed to run entirely on US shale oil.
Attempts to build new refineries in the United States have previously struggled because of high costs, complex permitting processes and environmental opposition.
In the mid-2000s, for example, a $2.5bn plan by Arizona Clean Fuels Yuma to construct a refinery south of Phoenix ultimately collapsed after backers failed to secure sufficient financing.
