Trump announces Reliance’s investment in new US refinery, Mukesh Ambani firm stays silent
MUMBAI: Earlier on Wednesday, India time, President Donald Trump announced that Reliance Industries Ltd will partner with America First Refining to set up the first new refinery in the US in nearly 50 years, in a deal valued at $300 billion.
However, Reliance Industries had not confirmed the development as of the time the news was published. Shares initially rose but reversed to close down 1.27%. ₹It was 1,391.1 per capita on BSE, while Sensex closed down 1.72%.
“Today, I am proud to announce that America First Refining has opened the first new U.S. oil refinery in 50 years in Brownsville, Texas,” Trump wrote on Truth Social. “We thank our partners in India and their largest private energy company, Reliance, for this tremendous investment.”
Separately, America First Refining said in February it had received “a 9-figure investment from a global supermajor at a 10-figure valuation,” without naming the investor. (A 10-figure valuation ranges from $1-9.9 billion; a 9-figure investment ranges from $100-999 million.)
The company also announced that it had signed a 20-year binding term sheet with the unnamed investor.
Reliance did not respond mint It responded to requests for comment and did not disclose whether it had made or planned to make any investments. The lack of confirmation from Reliance and the anonymity of America First’s investor leaves the Indian company’s role in the project unclear.
Trump’s announcement comes as Reliance is pursuing a $10 billion investment to pivot from oil to renewable energy near its Jamnagar refinery, including solar panels, green hydrogen and other clean technologies. Last month, president Mukesh Ambani also announced investment plans ₹10 trillion in seven years on artificial intelligence (AI) infrastructure, including data centers.
India’s most valuable company by market value ₹18.8 trillion Reliance operates the world’s largest refinery complex in Jamnagar, processing 1.2 million barrels per day.
Skepticism and confusion
America First Refining added that construction will begin before June. The refinery is expected to process 60 million barrels of US light shale oil annually; This means a total of 1.2 billion barrels worth $125 billion over twenty years. 50 billion gallons of refined products worth $175 billion will be produced.
“This project represents a historic step forward for American energy production,” said John V. Calce, president and founder of America First Refining. “For the first time in half a century, the United States will build a new refinery designed specifically for American shale oil. Thanks to President Trump’s leadership and the resurgence of the America First energy policy, we are creating thousands of high-quality jobs while ensuring more of our nation’s energy resources are refined right here in the cleanest, most efficient refinery on the planet.”
But experts are skeptical.
“It strikes me as incredibly skeptical about this happening. Possibly it could be an export facility moving large amounts of fuel to Latin America. But $300 billion – you could get the CITGO assets (huge assets!) for a fraction of the cost,” Tom Kloza, a New Jersey-based independent energy analyst, wrote on social media platform X.
CITGO Petroleum Corp. is a major U.S.-based refiner and marketer of transportation fuels that is owned by Venezuela’s state-owned company PDVSA and is currently going through a lengthy sale process.
“Initial announcements like this by the Trump administration contain a lot of hyperbole,” said John Auers, managing director of Refined Fuels Analytics. Reuters.
