A massive $300 billion oil refinery project has been announced for Brownsville, potentially marking the first new oil refinery constructed in the United States in about 50 years.
The project is being developed by America First Refining and will focus on processing American light shale oil. The company said the refinery will produce billions of gallons of refined fuel products while creating thousands of jobs in the region.
Officials said the facility will be located in a deep-water foreign trade zone near the Port of Brownsville, giving it access to international shipping routes as well as rail infrastructure for domestic distribution. Construction is expected to begin in the second quarter of 2026.
The refinery is designed to process up to 60 million barrels of U.S. light shale oil annually, strengthening domestic refining capacity and expanding exports of American fuel products.
Supporters say the project will help strengthen U.S. energy independence while creating significant economic opportunities in South Texas.
The facility will process 47° API light shale oil, which is considered cleaner and easier to refine than heavier crude oils often imported from overseas. Developers say the refinery will rely entirely on domestic crude supplies, eliminating the need for imported oil.
The project will also benefit from partnerships with international investors. According to officials, a major investment has been made by Reliance Industries.
Donald Trump highlighted the significance of the project when announcing the development.
"America is returning to REAL ENERGY DOMINANCE! Today I am proud to announce that America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas," Trump said in a post to Truth Social.
"THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY, A MASSIVE WIN for American Workers, Energy, and the GREAT People of South Texas!
"Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment. It is because of our America First Agenda, streamlining Permits, and lowering Taxes, that have attracted Billions of Dollars in Deals coming back to our Nation.
"A new Refinery at the Port of Brownsville, will fuel U.S. Markets, strengthen our National Security, boost American Energy production, deliver Billions of Dollars in Economic impact, and will be THE CLEANEST REFINERY IN THE WORLD. It will power Global Exports, and bring THOUSANDS of long overdue Jobs and Growth to a Region that deserves it. This is what AMERICAN ENERGY DOMINANCE looks like. AMERICA FIRST, ALWAYS!"
Developers also announced a binding 20-year offtake agreement with a global energy company tied to the refinery’s operations.
Under the agreement:
According to project developers, the combined impact of these agreements could help improve the U.S. trade balance by roughly $300 billion through increased energy exports.
Federal lawmakers from Texas have also voiced support for the refinery project, highlighting its potential economic and employment benefits.
Henry Cuellar said the investment would help expand domestic refining capacity while strengthening supply chains.
"As the lead Democrat to vote to lift the ban on United States oil exports in 2015, I’m pleased that the first major oil refinery built in the U.S. in nearly 50 years is coming to the Port of Brownsville," Cuellar said in a post to X. "This investment will increase domestic energy security while supporting thousands of good-paying jobs in South Texas.
"Adding refining capacity here at home helps our workers, reinforces supply chains, and delivers for the economy. The project is expected to process up to 1.2 billion barrels of U.S. light shale oil from the Permian Basin in West Texas, improving the U.S. trade balance by an estimated $300 billion. I’ll continue advocating for commonsense energy policies that enhance national security and create economic opportunity in South Texas."
The refinery’s location at a deep-water port is expected to make it a key export hub for refined fuel products.
Developers say the facility will produce gasoline, diesel and jet fuel designed for both domestic markets and international distribution. The strategic location also allows direct connections to rail networks, shipping lanes and pipeline infrastructure.
If completed as planned, the refinery could become one of the largest energy infrastructure projects in U.S. history and a major contributor to Texas’ already dominant oil and gas industry.
Industry analysts note that new refineries are rare in the United States due to high construction costs, regulatory hurdles and shifts in energy markets. As a result, the Brownsville project could represent a significant expansion of U.S. refining capacity after decades without a new large-scale facility.
Originally Reported by Mack Shaw and Alexandra Koch in Fox 26 Houston.
