The nation’s first new oil refinery in 50 years could be built in Brownsville, reviving a decade-old proposal

Plans for a new Brownsville oil refinery, once proposed more than a decade ago, are back on track, according to the Dallas-based company, the Port of Brownsville, and President Donald Trump himself.

Trump announced the project via a social media post on Tuesday, as tensions involving Iran continued to rattle global energy markets and raise demand for U.S. fuel exports.

“America is returning to REAL ENERGY DOMINANCE!” Trump wrote. “Today I am proud to announce that America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas.”

The president described the project as a $300 billion investment at the Port of Brownsville that would create “thousands of long overdue jobs and growth to a region that deserves it.”

“This is a historic $300 billion dollar deal — the biggest in U.S. history,” he said. “A new refinery at the Port of Brownsville will fuel U.S. markets, strengthen our national security, boost American energy production, and deliver billions of dollars in economic impact.”

Trump also said the investment involves partners in India, including a privately held energy company called Reliance.

New company revives proposal

In December 2025, the North Texas executives behind Element Fuels Holdings LLC incorporated a new company, America First Refining.

The new refinery proposal appears to rely on existing state environmental permits originally obtained by Element Fuels, with the project now shifting to the newly formed America First Refining.

The company’s plans mirror earlier proposals centered on a hydrogen-powered oil refinery designed to process U.S. shale oil, often known as light sweet crude.

“We create low-emission fuels while helping cut down on carbon pollution,” the company’s website states.

America First Refining expects to manufacture ultra-low-sulfur diesel, jet fuel, and specialized gasoline that meet standards for sale in Mexico City, which requires low-emission fuels.

To do so, the company is proposing to build a refinery capable of processing about 60 million barrels of crude oil per year on roughly 240 acres leased from the Port of Brownsville.

The refinery would be supplied by crude transported through pipelines from shale plays such as the Eagle Ford or the Permian Basin in West Texas.

Local leaders welcome investment

Major oil refineries are rarely built in the U.S. because of regulatory complexity, high construction costs and long permitting timelines. As a result, most investment in recent decades has focused on expanding existing facilities rather than constructing entirely new plants.

Port officials said that rarity underscores the significance of the proposed Brownsville refinery, which they noted has been under development for more than 12 years.

“We are pleased to see this long-planned investment moving toward fruition and thank President Donald J. Trump and his administration for their support in advancing opportunities that strengthen America’s energy infrastructure,” port officials said in a statement.

Brownsville Mayor John Cowen described the news as “one of the most significant energy infrastructure investments in the country,” and added that a groundbreaking ceremony would likely happen in April. 

“This project includes a 20-year agreement to purchase and process 1.2 billion barrels of U.S. shale oil, valued at approximately $125 billion, while producing up to 50 billion gallons of refined petroleum products valued at roughly $175 billion,” Cowen said. 

Gilberto Salinas, CEO and president of the Greater Brownsville EDC, said the investment reinforces the port’s role as a global energy hub.

“Projects like this have the potential to create meaningful economic impact through job creation, supply chain activity and long-term regional growth,” Salinas said. 

How the refinery would compare nationally

America First Refining’s proposed facility will be smaller than that of 40 existing refineries nationwide, according to U.S. Energy Information Administration data.

At 60 million barrels per year, the refinery would produce about 164,400 barrels per day. 

That’s roughly the output of the Citgo refinery in Corpus Christi.

But it would be dwarfed by ExxonMobil’s operation in Beaumont, which processes upwards of 600,000 barrels of crude oil each day.

Kristen Mosbrucker-Garza and Naxiely López-Puente contributed to this report.