U.S. Plans 168,000 bbl/d Refinery At Port Of Brownsville With Reliance Support

The United States government is planning to construct a new oil refinery on the southern U.S. border. The 168,000 barrels-per-day (bbl/d) refinery will be built at the Port of Brownsville with support from India’s Reliance Industries.

U.S. President Donald Trump revealed the plans as U.S. drivers face rising gasoline prices since the start of the U.S.–Israeli war with Iran.

Startup America First Refining reports that the refinery is expected to help offset $300 billion in the U.S. trade deficit with India, home to the world’s largest refining complex operated by Reliance Industries.

Reliance Industries has entered into a binding 20-year offtake term sheet with America First Company to procure products from the refinery.

This strategic move is expected to reduce India’s trade surplus with the United States—an issue that has previously been a point of contention for President Donald Trump—as Republicans and Democrats prepare for midterm elections that will determine which party controls Congress during the final two years of Trump’s presidency.

Tensions in the Middle East have heightened following the outbreak of the U.S.–Israeli war with Iran, which has disrupted energy markets and contributed to rising global oil and fuel prices.

The volatility has renewed concerns in the United States over fuel supply security and rising gasoline costs.