'Biggest In US History': Trump Announces 'Historic 300 Billion Dollar' Oil Refinery Deal With Reliance Industries

New Delhi: US President Donald Trump on Wednesday said Indian energy giant Reliance Industries Ltd. would support a proposed major oil refinery project in Texas, which he described as the first new refinery in the United States in half a century.

Trump made the announcement via his Truth Social platform, saying that the new refinery would fuel American markets and strengthen national security, along with boosting energy production.

The development comes amid heightened tensions in West Asian region and volatility in global oil markets in the wake of the conflict involving US, Israel and Iran, with the latter using missiles and drones in retaliation to target US military bases, embassies, and civilian/energy infrastructure in neighbouring Gulf nations, including the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, and Jordan.

The conflict has caused significant disruptions to global energy supplies, particularly around the Strait of Hormuz, where approximately 20% of the world's oil transits. "America is returning to Real Energy Dominance! Today, I am proud to announce that America First Refining is opening the First new U.S. Oil Refinery in 50 Years in Brownsville, Texas."

"This is a historic 300 billion dollar deal -- the biggest in US history, A Massive Win for American Workers, Energy, and the great people of South Texas!" Trump wrote, framing the project as a cornerstone of his energy agenda, but offering no details on the plan.

The Republican President further thanked India, and its largest privately held Energy Company, Reliance, for its tremendous Investment. On February 7, the two countries announced that they had finalised the contours for the first phase of the bilateral trade agreement.

"Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment. It is because of our America First Agenda, streamlining Permits, and lowering Taxes that have attracted Billions of Dollars in Deals coming back to our Nation," he wrote, without specifying the company's commitment.

Reliance is India's biggest privately held conglomerate, and its Jamnagar refinery is the world's largest.

"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, adding that it would deliver billions of dollars in economic impact and create thousands of jobs in the region.

"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," he said.

The America First Refining website says the company is a project of Element Fuels, which first announced plans in 2024 to build a Brownsville refinery at a cost of between $3-$4 billion. The facility would be the first refinery built on the Gulf of Mexico since the 1970s, and the only one designed to process 100 percent American shale oil, the company said.

Notably, India and the United States last month agreed on the framework of an interim trade deal aimed at easing tariffs and boosting bilateral trade. As part of the plan, the US said it would reduce reciprocal tariffs on Indian goods from 25 percent to 18 percent and also lift the 25 percent punitive tariffs imposed over India's purchase of Russian crude oil.

Both sides also agreed to reduce import duties on several goods. India agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including tree nuts, fresh and processed fruit, soybean oil, wine and spirits.

Under the pact, India also stated that it intends to purchase USD 500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.

To finalise the legal framework of the deal, the chief negotiators of both countries were scheduled to meet this week in Washington. However, before that, the US Supreme Court struck down Trump's sweeping global tariff policy on February 20.

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