WASHINGTON : U.S. President Donald Trump announced on Tuesday that the country will construct its first new oil refinery in 50 years at the port of Brownsville in Texas, backed by investments from Indian billionaire Mukesh Ambani’s Reliance Industries.

Describing the agreement as historic, Trump said in a post on Truth Social: “THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY,” while thanking Reliance Industries for what he called a “tremendous investment.”

Reliance Industries, India’s largest privately held energy company, already operates the world’s largest oil refinery complex in Jamnagar, India. According to LSEG data, the company currently has a market capitalization of about $206 billion.

The Texas refinery will be developed by America First Refining and is expected to process 100 per cent American shale oil. Trump said the project would strengthen national security, boost energy production, and generate billions of dollars in economic impact, adding that it would become “the cleanest refinery in the world.”

The announcement comes at a time when global oil prices have been volatile due to escalating tensions in the Middle East. Crude prices surged close to $120 earlier this week following developments linked to the U.S.–Israel conflict with Iran. As of late Tuesday, U.S. crude was trading at $84.71 per barrel, while Brent crude, the global benchmark, rose to $88.98.

America First Refining confirmed in a statement that it had received a nine-figure investment from a global energy supermajor at a ten-figure valuation but did not disclose the investor’s identity. The company also revealed that the same investor has signed a 20-year agreement to purchase, process, and distribute shale oil produced within the United States.

According to project estimates, the refinery will process about 1.2 billion barrels of U.S. light shale oil valued at approximately $125 billion and produce around 50 billion gallons of refined petroleum products worth $175 billion.

Trey Griggs, president of America First Refining, said the project addresses a key imbalance in the U.S. energy sector. “The United States has a surplus of light shale oil but a shortage of refining capacity designed to process it,” he noted, adding that the refinery will strengthen the country’s domestic supply chain.