Proposed Brownsville refinery advances with major engineering deal as investment decision nears

America First Refining has hired another major contractor to advance its proposed Brownsville refinery as the company works toward a final investment decision on the project.

Houston-based Matrix Service Company announced Wednesday that it was awarded the front-end engineering and design work for the refinery’s storage tank farm, which would store both the domestic crude oil coming into the refinery and the gasoline, diesel and jet fuel produced there.

Matrix described the contract as a “major step” toward America First Refining reaching a final investment decision, or FID — the point at which the developer formally decides whether to commit the capital needed to build the project.

The award provides another sign of engineering work moving forward on the proposed refinery, which the Trump administration has said would be the first new major U.S. refinery constructed in more than 50 years.

The facility is expected to process about 60 million barrels of domestically produced crude oil annually. The tank farm designed by Matrix would support refinery operations by providing storage and helping move crude feedstocks and finished products through the facility.

“We are proud to have been selected by America First Refining for this critical step in advancing this landmark project,” Matrix President and CEO Shawn P. Payne said in a news release Thursday.

The Matrix contract comes as America First Refining continues assembling contractors and engineering work needed to bring the Brownsville project closer to a final investment decision.

“We are proud to welcome Matrix as another world-class partner helping bring this historic project to life,” America First Refining founder and Chairman John Calce said. “With Matrix’s proven expertise, we are continuing to assemble the team and infrastructure needed to build the first new major U.S. refinery in more than 50 years.”

America First Refining plans to build the refinery using a design tailored to process American light shale oil. The company says the facility would produce ultra-low-sulfur diesel, jet fuel and specialized gasoline.

Matrix Service Company specializes in engineering, construction and maintenance for energy, power and industrial infrastructure. The publicly traded company operates through three primary business segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities.

The company did not disclose the value of the Brownsville engineering contract or provide a timeline for completing the tank farm design in Wednesday’s announcement.