Ril storms US energy sector with Texas refinery plan

Washington/New Delhi: Billionaire Mukesh Ambani’s Reliance Industries will partner in building the first new oil refinery in the US in nearly 50 years, US President Donald Trump said, describing it as the “biggest in US history”.

The refinery will be located in Brownsville, Texas, and is designed to run entirely on US shale oil, according to America First Refining (AFR), the firm leading the project.

Reliance has signed a 20-year agreement to purchase fuels produced at the refinery, with groundbreaking expected in the second quarter of 2026.

Trump, posting on Truth Social, described the venture as a “historic $300 billion deal”. AFR, without naming Reliance, said it had received a nine-figure investment from a global supermajor at a ten-figure valuation. Reliance did not immediately comment.

Industry experts estimate the project may cost about USD 4-5 billion. Once completed, it would be the first new major refining project in the US since Marathon Petroleum’s Garyville facility in Louisiana came online in 1977. This will be Reliance’s first refinery project in the US. The company operates the world’s largest refining complex at Jamnagar, Gujarat, with a capacity to process 1.24 million barrels of crude oil per day. AFR said it has signed a binding 20-year offtake agreement with the unnamed global partner to purchase, process and distribute American-produced energy sourced exclusively from US shale oil.

Under the agreement, 1.2 billion barrels of US light shale oil worth USD 125 billion will be purchased and processed.