U.S. President Donald Trump has revealed plans for a new refinery on the southern U.S. border, with India’s Reliance Industries set to invest and purchase its output. The announcement comes amid rising gasoline prices following U.S. and Israeli military action in Iran.

The refinery, to be located at the port of Brownsville, Texas, is expected to process 168,000 barrels of oil per day. It is designed specifically for American shale oil, which many Gulf Coast refineries cannot process efficiently due to their focus on heavier crude types.

Trump highlighted the deal’s economic benefits, stating that it could help offset the $300 billion trade deficit with India. America First Refining, the project developer, confirmed that Reliance has signed a binding 20-year agreement to buy the refinery’s products.

“For the first time in 50 years, the U.S. will have a refinery built for American shale oil,” said John V. Calce, chairman of America First Refining. Trump also emphasized that the refinery will support U.S. energy production, strengthen national security, and deliver a major economic boost.

Experts, however, remain cautious. Analysts point out that the Gulf Coast already hosts eight of the country’s ten largest refineries and question the need for an additional plant. Some suggest that the Brownsville facility may primarily serve export markets, as local demand and pipeline connections are limited.

Reliance Industries, India’s largest private-sector company, operates the 1.4 million bpd Jamnagar refinery in India, the world’s largest, and has a diversified portfolio in energy, retail, media, and digital services. Construction of the new refinery is expected to begin in the second quarter of 2026.

The project comes as U.S. refining capacity continues to grow slowly, even as closures in California have reduced domestic capacity by 284,000 bpd over the past year.