‘Historic deal’: Trump says Reliance Industries to partner in new US oil refinery
The refinery, if completed, will be the first new one in the US in 50 years; it will be located in Texas, and designed to run entirely on US shale oil
Reliance Industries and the US will partner in building the first new oil refinery in that country in 50 years, US President Donald Trump has announced, calling it the "biggest in US history".
The new refinery will be located in Brownsville, Texas, and will be designed to run entirely on US shale oil, according to America First Refining (AFR), the firm piloting the project.
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Once completed, it would be the first new major refining project in the US since Marathon's Garyville, Louisiana, facility came online in 1977.
‘Historic deal’
Mukesh Ambani’s Reliance has signed a 20-year agreement to purchase fuels produced at the refinery, with ground breaking for the project scheduled in the second quarter of 2026.
While Trump, in a post on Truth Social, named Reliance as the partner in the project that he said was "A HISTORIC $300 BILLION DOLLAR DEAL", AFR, without naming the company, said it has "received a 9-figure investment from a global supermajor at a 10-figure valuation".
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Reliance did not immediately offer any comments.
Neither Trump nor AFR gave financial details of the project or completion timelines. However, industry experts said the project may cost up to USD 4-5 billion (Rs 33,000 crore to 41,500 crore).
Reliance and the US
Reliance has had longstanding commercial presence in the US through energy trading, technology partnerships and investments. The company previously invested in US shale gas assets and currently sells a lot of fuel in the US.
Reliance also sources crude oil, petrochemical feedstocks and technology from US partners, while its digital and retail arms have explored collaborations with American technology firms and investors.
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The likes of Facebook and Google have invested in Ambani's digital unit, Jio Platforms, while US investors such as General Atlantic have taken minority stake in Reliance Retail Ventures.
New venture
Under the newly signed agreement, 1.2 billion barrels of US light shale oil, valued at USD 125 billion, will be purchased and processed. Also, AFR will produce 50 billion gallons of refined products worth USD 175 billion.
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The announcement came just as the US and Israel war against Iran roils oil markets and the White House seeks ways to quell concerns about rising energy prices.
(With agency inputs)