President Donald Trump on Tuesday hailed plans for a new oil refinery at the Port of Brownsville, calling it the first U.S. refinery built in roughly 50 years and touting the arrangement as a “historic” $300 billion deal. The company behind the project, which is calling itself America First Refining, says the plant would be purpose built to process American shale oil and deliver thousands of construction and permanent jobs for the region. Texas Gov. Greg Abbott quickly cheered the announcement, crediting the state's policies and the port's geography for landing the project in South Texas, according to PR Newswire.
What was announced
In a company statement describing the deal, America First Refining said it had secured a nine figure investment from a "global supermajor" and signed a binding 20 year offtake term sheet, adding that it plans to break ground in the second quarter of 2026. The developer's press release was published via PR Newswire, and Bloomberg Law carried details of the president's announcement, including his "historic" $300 billion framing.
Port reaction and politics
The Port of Brownsville issued a statement welcoming the news and calling the project "an exciting step forward" for the Rio Grande Valley, saying local leaders have been working on the plan for more than a decade. The Port of Brownsville said it was "pleased to see this long planned investment moving toward fruition." Gov. Greg Abbott amplified the administration's message on X, praising Texas's "low regulations" and "geographic advantage" as key reasons energy companies choose the state.
Who's behind the project
America First Refining identifies itself as the continuation of previously announced work by Element Fuels, and in its statement the company lists John V. Calce as chairman and Trey Griggs as president. The plan traces back to a June 2024 proposal by Element Fuels, which the Houston Business Journal reported as a greenfield effort to build a roughly 160,000 barrel per day refinery at the Port of Brownsville.
Questions and skepticism
Outside observers and market analysts urged caution, noting that the Gulf Coast already houses large refining hubs and questioning whether Brownsville, with its more limited pipeline connections, would mainly serve domestic markets or function chiefly as an export facility. Reuters reported that it was not immediately clear whether the president's post referred to a signed transaction with Reliance, which had not publicly confirmed involvement at the time, and U.S. Energy Information Administration data show Texas accounts for roughly one third of U.S. refining capacity.
Timeline and what's next
America First's website lays out a multistage plan for a Brownsville complex and cites a 168,000 barrel per day design capacity along with emissions reduction measures the company says will make the plant unusually clean. America First Refining and the company's release both say ground will break in the second quarter of 2026, while major details, including formal partner disclosures, financing and the full permitting record, remain to be posted publicly.
Local leaders have hailed the potential economic boost, while energy experts are keeping a wary eye on the headline $300 billion figure, which folds in crude purchases, output values and long term contract math. For now, the Port of Brownsville and the developer are clearly optimistic, but independent confirmations from the international backers named by the administration have not yet appeared in public filings.
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