Trump said the US will build its first refinery in 50 years with investment from India’s Reliance

President Donald Trump announced on Tuesday that the US will get its first oil refinery in 50 years thanks to an investment from Indian billionaire Mukesh Ambani. Reliance Industries.

“This is a historic $300 billion dollar deal — the largest in U.S. history,” Trump said in a Satya social media post.

He also thanked Reliance Industries, India’s largest privately owned energy company, “for this tremendous investment”.

Reliance owns the world’s largest oil refinery in Jamnagar, India, and has a market capitalization of $206 billion, according to LSEG data.

Trump said the new refinery at the Port of Brownsville, Texas, would “strengthen our national security, increase American energy production, deliver billions of dollars in economic impact and be the cleanest refinery in the world.”

The refinery is designed to process 100% American shale oil and is being developed by America First Refining.

The refinery opening coincides with global oil prices boosted by the intensifying conflict in the Middle East. Since the start of the US-Israeli war over Iran, crude oil prices have been volatile, touching around $120 on Monday. Higher fuel prices benefit shale refiners.

US crude was up 1.15% at $84.71 per barrel at 10:38 pm ET. Brent crude, the global benchmark, rose 1.33% to $88.98.

Reliance Industries and America First Refining did not respond to requests for comment.

America First Refining said in a statement on Tuesday that it had received “a 9-figure investment from a global supermajor at a 10-figure valuation,” without giving any further details about the investors.

“The same global supermajor” signed a 20-year deal to buy, process and distribute shale oil produced stateside, America First Refining added.

The refinery processes 1.2 billion barrels of US light shale oil, valued at $125 billion, and produces 50 billion gallons of refined products valued at $175 billion.

“The United States has a surplus of light shale oil but lacks the refining capacity designed to process it,” said Trey Griggs, president of America First Refining. He said the refinery would strengthen the domestic supply chain.