US President Donald Trump on Wednesday unveiled plans for a landmark Sh38.7 trillion project to build a new oil refinery in Brownsville, Texas, marking the first refinery construction in the United States in five decades.
The initiative, in partnership with India’s Reliance Industries, is aimed at boosting domestic energy production, exports, and creating thousands of jobs in South Texas.
In a statement, Trump described the project as part of a broader strategy for “real energy dominance” and hailed it as the largest investment deal in US history.
“This is a major step for American energy and for our economic future,” he said, highlighting the scale of the initiative and its expected benefits.
The refinery will be developed with Indian investors, including Reliance Industries, the country’s largest privately owned energy company.
Officials say the facility will create thousands of jobs across construction, logistics, and refinery operations, providing a significant economic boost to a region long seeking industrial investment.
Trump said the refinery would strengthen national security and increase the United States’ ability to refine and export petroleum products. “It will fuel domestic markets while boosting American energy production and enhancing export capacity through the Gulf Coast,” he added.
The timing of the project is critical, coming amid instability in the global oil market. Conflicts involving Iran and the closure of the Strait of Hormuz, a key energy route handling about 20 million barrels per day, have disrupted shipments and caused global fuel prices to surge.
About 1.9 million barrels per day of refining capacity in the Gulf region has been temporarily shut down due to the hostilities, industry data shows.
Energy analysts note that such disruptions highlight the need to expand domestic refining capacity. The new Texas facility is expected to process roughly 160,000 barrels of crude oil per day, primarily from American shale fields.
This would reduce dependence on imported refined products while strengthening energy security.
The refinery project comes as the US seeks to mitigate volatility in global fuel markets, with experts warning that prolonged closure of the Hormuz corridor could drive oil prices up by 40–60% and threaten fuel supplies worldwide.
Although the US is already a leading oil producer, additional refining capacity is seen as essential to converting crude into gasoline, diesel, and jet fuel for both domestic consumption and exports.
Trump attributed the investment to his administration’s economic policies, particularly tax reductions and streamlined permit processes, which he said have helped attract billions of dollars back to the United States.
The refinery will be strategically located near existing energy infrastructure along the Texas Gulf Coast. The Port of Brownsville, one of the state’s largest ports, will serve as a major gateway for trade and energy exports. Officials expect the project to expand the port’s industrial capabilities while creating numerous employment opportunities.
The president also highlighted that the facility is expected to be the cleanest refinery of its kind globally, incorporating modern technology and environmental controls.
Analysts note that the United States has not constructed a completely new major refinery in decades, with most expansions limited to upgrades of existing facilities.
If completed, the Brownsville refinery could become one of the largest energy infrastructure projects in the country, reshaping the region’s economic landscape and reinforcing the United States’ position as a global energy leader.
Supporters argue that increasing refining capacity will strengthen supply chains and reduce reliance on foreign fuel processing, while fostering cooperation between US energy firms and international investors.
Trump described the project as a milestone for the US energy sector and a sign of renewed American leadership in global energy markets. Planning is expected to advance in the coming years, with communities around Brownsville set to benefit from new jobs, infrastructure development, and enhanced trade flows.
