President Donald Trump announced that Reliance, India's largest refiner, will invest in building the first new U.S. refinery in 50 years in Texas. The move appears aimed at courting a district where Republicans suffered a shocking defeat in a special election earlier this year, ahead of November's midterm elections.
Trump posted on his social media platform Truth Social on the 10th (local time), stating, "I am proud to announce that 'America First Refining' will open the first new American refinery in 50 years in Brownsville, Texas." He called it "a record-breaking $300 billion deal" (approximately 442.65 trillion won).
"The new refinery at the Port of Brownsville will supply fuel to the American market, strengthen national security, boost domestic energy production, and generate billions of dollars in economic impact," Trump added. "True American energy dominance is returning."
Bloomberg interpreted the project as appearing to be the same one Element Fuels was pursuing in June 2024. According to Bloomberg, Element Fuels had announced at the time that it secured a site and obtained necessary permits for constructing a facility capable of processing 160,000 barrels of oil per day. America First Refining, the entity Trump mentioned, is presumed to be either the same company as Element Fuels or its successor. While U.S. oil production has surged over the past 15 years due to the shale revolution, refining facilities have aged and several have closed in recent years.
Texas is traditionally a Republican stronghold, but in the January 31 special election for State Senate District 9, voters gave 57% of the vote to the Democratic candidate. The Republican candidate received only 43%. The same district had voted 58% for Trump and 41% for then-Vice President Kamala Harris in the November 6, 2024 presidential election. On the 4th of this month, Trump also posted on Truth Social about the Republican primary to select a federal Senate candidate from Texas ahead of the November midterms, pressuring that his endorsed candidate should become the final nominee.
India's Reliance has reportedly been contacting relevant companies after the U.S. temporarily permitted purchases of Russian crude oil due to the Iran conflict. India is the world's third-largest oil importer, relying on tankers passing through the Strait of Hormuz for approximately 40% of its crude imports.
