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The first new oil refinery in the country in 50 years will open in Brownsville, President Donald Trump announced.

According to a Tuesday social media post, America First Refining will be coming to the Port of Brownsville as part of a $300 billion deal.

Trump called the deal a “massive win” for workers and the South Texas region, and said the refinery will fuel the markets, strengthen national security, boost energy production, and deliver billions of dollars in economic impact.

Read Trump’s full statement below:

President Donald J. Trump announces that America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas. ????This is what AMERICAN ENERGY DOMINANCE looks like. ?? pic.twitter.com/UTOW7wECCI

— The White House (@WhiteHouse) March 10, 2026

The America First Refining website says the complex is being developed on more than 240 acres of land at the port.

"With six liquid cargo docks, 13 general cargo docks, direct rail connections, specialized road access, and significantly shorter vessel wait times compared to other major Texas ports, the Port of Brownsville offers an ideal location for efficient transportation of America First Refining’s products," the website reads.

According to Brownsville Mayor John Cowen, the refinery will process American light shale oil from the Permian Basin and "represents one of the most significant energy infrastructure investments in the country."

"The project includes a 20-year agreement to purchase and process 1.2 billion barrels of U.S. shale oil, valued at approximately $125 billion, while producing up to 50 billion gallons of refined petroleum products valued at roughly $175 billion," Cowen added.

In a statement, the Port of Brownsville said the project has been in development for more than 12 years.

Read the statement in full below:

"The Port of Brownsville welcomes today’s announcement regarding the America First Refining project, a development that has been more than 12 years in the making. We are pleased to see this long-planned investment moving toward fruition and thank President Donald J. Trump and his administration for their support in advancing opportunities that strengthen America’s energy infrastructure.

This project represents an exciting step forward for our region, and our port leadership remains committed to attracting transformative investments that create good-paying jobs and expand economic opportunity for the people of the Rio Grande Valley and the State of Texas."

This is a developing story; check back for updates.

Report a Typo

America First Refining is developing the facility which will be designed to process light shale oil.

BROWNSVILLE, Texas — For the first time in nearly 50 years, a new oil refinery will be built in the United States, in Brownsville, Texas.

President Donald Trump announced the plans for the new large-scale refinery at the Port of Brownsville in a post on Truth Social on Tuesday.

“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!” Trump wrote.

It will be funded in large part by investments from Indian billionaire Mukesh Ambani’s Reliance Industries, which owns the world’s largest oil refinery in India. In his Truth Social post, Trump thanked Reliance “for this tremendous Investment.”

The facility is designed to process 100% US light shale oil. America First Refining is developing it.

In its statement on Tuesday, AFR said it got a “9-figure investment from a global supermajor at a 10-figure valuation,” but did not offer any other details about the investor. It said “the same global supermajor” has also signed a 20-year deal “that secures commitments to purchase, process, and distribute American-produced energy exclusively sourced from American shale oil.”

“They're really counting on exporting because after all, their investor is the large Indian refinery operation and major oil company, that's who is buying this or investing in it,” Ed Hirs, an Energy Fellow at the University of Houston, said. “They have the offtake agreement with them, which means that they're entitled to all of the refined products.”

It has been a 12-year-long process to get to this point, and finding a commercial partner was the final step.

“It makes perfect sense because India is completely dependent upon imported crude and imported refined products to run its economy,” Hirs said.

Hirs said refineries are difficult to finance in the U.S.

“They make pennies on the gallon. They don't make a lot of money. The oil and gas sector has been the poorest performer in the S&P 500 for more than a dozen years, notwithstanding the last eight weeks,” Hirs said. “That's not enough to convince Wall Street to advance capital in this direction, especially when domestically, our consumption of transportation fuels has been tailing off because we buy more efficient vehicles and there is a trend towards EVs.”

In his post, Trump billed the announcement as a big step toward reducing the nation’s reliance on foreign oil.

“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,” Trump said. “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!

Under the 20-year agreement, the project is expected to secure the purchase and processing of 1.2 billion barrels of US light shale oil, valued at approximately $125 billion, and produce up to 50 billion gallons of refined petroleum products valued at an estimated $175 billion.

"This project represents a historic step forward for American energy production," John Calce, Chairman and Founder of America First Refining, said. "For the first time in half a century, the United States will build a new refinery designed specifically for American shale oil. Thanks to President Trump's leadership and the resurgence of an America First energy policy, we are creating thousands of high-quality jobs while ensuring more of our nation's energy resources are refined here at home in the cleanest, most efficient refinery on the planet."

The refinery is expected to produce gasoline, diesel, and jet fuel.

It will be specifically designed to process American shale oil, which many existing oil facilities are not designed to do.

“It's only been in the last 15, 20 years that we've been able to really extract this light, sweet crude from the shale plays, from the tight formations,” Hirs said.

While the country currently has abundant light shale oil, there is a lack of refining capacity to process it.

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

The refinery will be engineered to process 47° API American light shale oil, which is cleaner, more efficient, and less costly to process than heavier imported crude. Unlike many current US refineries that depend on foreign oil, this facility will rely entirely on domestically produced oil.

CEO and Port Director of the Port of Brownsville, William Dietrich, said the new facility will be powered largely by hydrogen and use advanced technologies to produce some of the cleanest fuels in the nation.

“This is not the refinery of the past where you drive down the road, and you see smoke stacks for miles as you're going down the freeway,” Dietrich said. “There's been a lot of social responsibility as it pertains to environmental issues and the optics on what we have perceived and seen in the past of what a refinery looks like.”

The refinery is expected to produce gasoline, diesel, and jet fuel. It will use advanced technologies designed for efficiency and cleaner production. The facility is expected to have the capacity to process 60 million barrels per year of 100% US light shale oil.

The total cost of the project is expected to range between $3 billion and $4 billion.

The project is expected to contribute roughly $300 billion in improvements to the U.S. trade balance.

Ed Hirs, an Energy Fellow at the University of Houston, said he is skeptical.

“They talk about $175 billion in sales over this period of time, so it looks like the value add is only $50 billion for the refinery uplift, which makes some sense across 20 years,” Hirs said. “The $50 billion would be the net reduction in the balance of payments problems simply because it's all being exported to India.”

Hirs said the US produces roughly 13 million barrels a day and exports about 4 million barrels a day of light shale oil from the Permian Basin. The US consumes between 18 and 20 million barrels a day.

“The U.S. has been expanding its refinery capacity with additions to existing refineries, even while we've closed almost two dozen over the last 15 years,” Hirs said. “We've become very efficient at refinery operations, and it makes a lot of sense to expand the currently standing refineries because they have all the infrastructure in place for delivery of fuel, delivery of feedstock, and sending out to distributors for the refined products.”

Hirs said he believes it is likely the oil is being counted multiple times, both in its crude form and after processing, even though it is the same oil.

“This is the petrochemical part of America — the petrochemical refinery complex, the heart of the world. We have a lot of industrial capacity here,” Hirs said. “It's certainly a positive addition for the state. It's a positive addition to Brownsville, its population, its tax base, and its employment. It's commerce. These are all really good things. It's just that the benefits appear to have been exaggerated in this particular instance.”

As the conflict between the US, Israel and Iran drags on, oil prices rose above $100 per barrel on Thursday, three days after they hit a high not seen in four years. The increase came despite the US and 31 other countries agreeing to a historic release of oil for the global market.

The Strait of Hormuz, which is a major oil shipping route, is effectively closed during this conflict as Iran is attacking any ships that attempt to go through the area.

Roughly 20 million barrels of oil pass through this key waterway every day. That's roughly 20% of the world's oil supply.

In a statement read by a state television anchor on Thursday, Iran’s new Supreme Leader Ayatollah Mojtaba Khamenei said the country has no plans to let traffic freely flow once again through the Strait of Hormuz and vowed Iran will continue attacking its Gulf Arab neighbors.

According to the Wall Street Journal, the International Energy Agency has proposed the largest release of oil reserves in its history to bring down crude prices that have soared since the conflict began.

According to AAA, gas prices are up for the 12th straight day. A gallon of regular gas now averages $3.60. That's over 20% more than a month ago.

The deepwater seaport is located directly on the U.S.-Mexico border and operates as an international Foreign Trade Zone. The facility will be located on more than 240 acres of the port's 40,000-acre property. It will be located on the south side of the channel, which Dietrich said is called Port Main, where the cargo docks are and where there is a lot of industrial activity right now.

“We're going to be creating multiple liquid cargo docks. There's a direct rail connection to this project, and this helps us out in taking advantage of the status that we are a foreign trade zone,” Dietrich said. “These infrastructure things make the Port of Brownsville uniquely positioned to support large-scale energy projects, efficiently connecting the next domestic production to both national and international markets.”

The project is expected to create approximately 500 direct jobs in the Port of Brownsville and the Rio Grande Valley, and thousands of indirect jobs across the construction, operations and logistics. Dietrich said the base salary for these positions is estimated to range from $80,000 to $100,000 per year.

“We're going to be creating high-dollar jobs for the community,” Dietrich said. “We are ready to meet the operational demands of this facility and continue supporting projects that strengthen the region's economy and workforce and industrial capacity for decades to come.”

When asked about greenhouse gas emissions or other negative environmental effects from the refinery, Dietrich said the facility plans to implement new technology to reduce its environmental impact.

“There are numerous factors, some technology in there that we're not going to be able to go into detail because we're still under NDA, but once we get all that, we will be transparent with the community,” Dietrich said. “Rest assured, this is the cleanest refinery that's ever been built on the planet.”

A groundbreaking ceremony for the refinery is expected to take place at the Port of Brownsville in April 2026.

BROWNSVILLE, Texas —The Port of Brownsville today held a press conference at its administrative office to announce the America First Refining project, which will be the first new U.S. Gulf Coast oil refinery in nearly 50 years. The project announcement was first shared by President Donald J. Trump on Mar. 10, on social media.

The refinery, to be built on more than 240 acres within the port, will process 100 percent domestic shale oil using advanced, hydrogen-powered systems to produce ultra‑low‑carbon fuels. According to America First Refining, the project will create 500 direct full-time jobs, with projected annual salaries ranging from $80,000 to $100,000. Thousands more indirect jobs are expected across construction, logistics and long-term operational support industries, representing one of the most significant industrial investments in South Texas history.

“This announcement is a defining moment for our region,” said Brownsville Navigation District Chairman Esteban “Steve” Guerra. “America First Refining chose us because we have the land, the infrastructure, the workforce and the commitment to get it done. This is exactly the kind of transformative investment that strengthens our economy and creates real opportunity for South Texas families.”

The Port of Brownsville provides America First Refining with deepwater channel access, direct dock and rail connectivity, world‑class cargo-handling capabilities and foreign trade zone status advantages that have positioned the port as one of the fastest-growing industrial corridors on the Gulf Coast.

“This project strengthens the Port of Brownsville as a critical U.S. energy logistics hub and elevates the entire Rio Grande Valley on the national and international stage,” said Port Director and CEO William Dietrich. “We are proud to support America First Refining and to build stronger foundations for the future of this region.”

America First Refining emphasized its environmental commitments as a central component of the project. The facility will integrate hydrogen-powered technologies and advanced clean-fuel systems designed to minimize emissions and meet or exceed all federal and state regulatory standards. The company is currently working with federal, state and local agencies to secure the necessary environmental permits, a process the port is uniquely positioned to support.

The Port of Brownsville has extensive experience guiding major industrial developments through complex permitting and environmental review, including two LNG projects that required rigorous federal oversight. That expertise, combined with the port’s long-standing commitment to environmental stewardship, provides a strong foundation for oversight, transparency and community engagement.

The port and America First Refining reaffirm that protecting regional waterways, coastal ecosystems and community health will remain top priorities throughout the project’s development. Both organizations will provide regular updates as permitting milestones and construction phases progress.

For more information about America First Refining visit www.americafirstrefining.com.

About the Port of Brownsville The Port of Brownsville is the only deep-water seaport directly on the U.S.-Mexico border and encompasses 40,000 acres – the largest land-owning public port authority in the country. The port transships more steel into Mexico than any other U.S. port and is home to premier energy, shipbuilding, and ship recycling industries. It ranks No. 41 among the Top 150 U.S. maritime ports for waterborne cargo, according to the U.S. Army Corps of Engineers. As the major multimodal transportation hub serving the Rio Grande Valley and northern Mexico, the Port of Brownsville supports investment opportunities and jobs. Activity at the port is responsible for adding more than $1 billion to the Rio Grande Valley regional economy and more than $12 billion to the Texas economy, and the creation of more than 100,000 jobs statewide. For more information visit www.portofbrownsville.com

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A new oil refinery planned for South Texas could bring thousands of jobs and a major energy investment to the region — while also raising concerns about pollution, water use and coastal risks.

President Donald Trump announced Tuesday that a more than 240-acre refinery called America First Refining will be built at the Port of Brownsville, the first new refinery constructed in the U.S. in nearly 50 years.

“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!” Trump posted on social media Tuesday.

According to America First Refining, the project includes a 20-year deal to process U.S. shale oil and produce refined fuels valued at roughly $300 billion. The Texas-based company plans to break ground later this year.

Exports would be sold exclusively to India, which is helping fund the project along with its largest privately held energy company, Reliance Industries. In a press release, America First Refining said the agreement could improve the U.S. trade deficit, which sat at about $901 billion by the end of 2025.

In a statement, Brownsville Mayor John Cowen said the project is expected to “strengthen America’s energy security” and bring thousands of new “high-paying jobs” to the region. Ed Hirs, an energy fellow at the University of Houston, agreed the refinery could bring economic benefits to South Texas.

“It’s a good thing for the U.S. — it’s good for employment, it’s good for taxes, it’s good for schools, it’s good for Texas,” Hirs said.

However, Hirs added that this new refinery would likely have little impact on gas prices in Texas, which have recently spiked amid the war in Iran. Because the facility’s refined fuels would be exported directly to India, Hirs said, the project is unlikely to affect fuel supplies in the U.S.

Luke Metzger with Environment Texas says the refinery could have a significant effect on the surrounding region. He questions Trump’s description of the refinery as “the cleanest refinery in the world.” According to America First Refining’s website, the refinery will produce and recycle hydrogen to generate cleaner, higher-quality fuels.

“It’s hydrogen derived from fossil fuels,” Metzger said, “so that might reduce emissions some, but this mostly seems to be a marketing claim.”

America First Refining didn’t respond to questions about its hydrogen process Wednesday afternoon.

Metzger said Texas refineries routinely emit pollutants linked to cancer and raised concerns about potential impacts on South Texas farmers, saying air pollution could affect crops while the refinery’s water use could further strain water supplies during drought conditions. The Port of Brownsville is also near a wildlife refuge and other ecologically sensitive areas.

He also said hurricanes and extreme weather could raise the risk of air pollution or chemical spills if the coastal refinery is damaged during a storm.