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Donald Trump introduced plans for the primary main refinery to be constructed within the US in nearly half a century within the Texas metropolis of Brownsville backed by Indian power group Reliance Industries.
The president unveiled the challenge from slightly identified group referred to as America First Refining on Reality Social, describing it as “A MASSIVE WIN for American Employees, Vitality, and the GREAT Individuals of South Texas!”
“A brand new Refinery on the Port of Brownsville, will gasoline U.S. Markets, strengthen our Nationwide Safety, increase American Vitality manufacturing, ship Billions of {Dollars} in Financial influence,” Trump wrote.
The announcement comes because the president’s warfare in opposition to Iran roils oil markets and the White Home seeks methods to tame a surge in crude costs.
The challenge, if accomplished, could be the primary new main refining challenge within the US since Marathon’s Garyville, Louisiana facility got here on-line in 1977.
AFR stated the announcement got here after it acquired a “nine-figure funding from a worldwide supermajor at a 10-figure valuation” — which it declined to call.
Trump on Reality Social thanked India’s Reliance for “this large Funding”. Reliance couldn’t instantly be reached for remark.
AFR acknowledged it might want to lift extra capital to finish a challenge anticipated to price as much as $4bn.
It stated it had additionally “signed a binding 20-year offtake time period sheet with the identical world supermajor that secures commitments to buy, course of and distribute American-produced power completely sourced from American shale oil”.
AFR stated the power could be able to refining about 60mn barrels a yr of American gentle crude and building would start within the coming months.
The president wrote the challenge was “A HISTORIC $300 BILLION DOLLAR DEAL”.
AFR stated the determine was based mostly on a calculation that the refinery would buy and course of 1.2bn barrels of shale oil at an estimated worth of $125bn and produce 50bn gallons of refined product at an estimated worth of $175bn, enhancing the US commerce stability by $300bn.
The brand new refinery inside the Port of Brownsville was first proposed by Aspect Fuels, which accomplished website preparations for a hydrogen-powered facility in June 2024. The founder and chief govt of Aspect Fuels, John Calce, is the CEO of AFR.
Calce advised the FT the title “America First” mirrored the corporate’s use of American shale as crude oil feedstock, quite than a political affiliation. “I’m not a significant Trump donor,” he added.
The US has 132 working oil refineries, in line with the Vitality Data Administration. Most had been constructed many years in the past and are finest suited to course of the type of heavy crude frequent in Venezuela and Canada.
