News
March 18, 2026

First new U.S. refinery in 50 years planned

Construction Owners Editorial Team

For the first time in nearly half a century, a new oil refinery is set to be built in the United States, marking a major shift in domestic energy infrastructure. America First Refining (AFR) announced plans to construct the facility at the Port of Brownsville, positioning the project as a cornerstone for future energy independence.

Courtesy: Photo by AFR

The company described the initiative as “the largest energy deal in U.S. history,” highlighting its scale and long-term economic implications. Backed by a major global oil and gas investor, AFR expects to begin construction in the second quarter of 2026.

Massive Long-Term Energy Agreement

At the core of the project is a 20-year agreement between AFR and a global energy partner. Under the deal, the refinery will:

  • Process approximately 1.2 billion barrels of U.S. light shale oil
  • Produce nearly 50 billion gallons of refined fuels
  • Generate a combined value estimated at $300 billion

The company said this effort could significantly improve the U.S. trade balance by keeping more crude oil processing within the country rather than relying on imports.

AFR noted that between 2014 and 2024, the U.S. exported nearly 10 billion barrels of crude oil while importing about 28 billion barrels—an imbalance that has cost over $1.8 trillion. The new refinery aims to redirect up to 60 million barrels of domestic crude annually into U.S.-based refining operations.

Designed Specifically for U.S. Shale Oil

Unlike traditional refineries that process a mix of crude types, this facility will be engineered exclusively for American light shale oil. According to AFR, this type of oil is cleaner, more efficient to refine, and less costly than heavier imported crude.

By eliminating the need for foreign crude imports, the project is expected to strengthen national energy security while producing cleaner fuels such as gasoline, diesel, and jet fuel.

“This is one of the most important energy infrastructure projects in America today,” said Trey Griggs, President of America First Refining.

“The United States has a surplus of light shale oil, but a shortage of refining capacity designed to process it. By building this refinery at the Port of Brownsville, we’re unlocking a major expansion of American energy production while creating thousands of high-paying jobs and strengthening our domestic supply chain.”

Strategic Location to Drive Regional Growth

The Port of Brownsville was selected for its deepwater capabilities, enabling efficient distribution to both domestic and global markets. Its designation as an Economic Opportunity Zone further enhances the project’s economic appeal.

Beyond national benefits, the refinery is expected to serve as a major economic engine for South Texas, creating thousands of construction and long-term operational jobs with competitive wages.

What It Means for the Construction Industry

The scale of the AFR refinery presents a significant opportunity for:

  • General contractors and subcontractors
  • Equipment suppliers and manufacturers
  • Skilled labor across multiple trades

As the project moves toward groundbreaking, construction firms and industry professionals are expected to closely monitor bidding opportunities and project developments.

Additional & Expanded Context

Why No New Refineries in 50 Years?

The U.S. has not built a new major refinery in decades due to:

  • High capital costs and regulatory hurdles
  • Environmental concerns and permitting challenges
  • Market shifts toward efficiency and alternative energy

This project signals a potential reversal of that trend, driven by increased domestic oil production and geopolitical energy concerns.

Economic and Energy Implications

If completed as planned, the refinery could:

  • Reduce reliance on imported crude oil
  • Strengthen domestic supply chains
  • Improve trade balance by hundreds of billions of dollars
  • Support long-term job creation in the energy and construction sectors

Challenges Ahead

Despite its promise, the project may face:

  • Environmental and regulatory scrutiny
  • Fluctuating oil prices affecting long-term viability
  • Workforce and supply chain constraints during construction

Originally reported by Marshall Benveniste in Construct Connect News.

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