New refinery planned on US border, says Trump
SEATTLE (Oil Monster): U.S. President Donald Trump announced on Tuesday plans for a new oil refinery to be built in Brownsville, Texas, thanking Indian energy company Reliance Industries for its role in the project.
Trump made the announcement as U.S. drivers are reacting to a spike in gasoline prices following the start of the U.S.-Israeli war with Iran, and while Republicans and Democrats gear up for midterm elections that could determine which party controls Congress through the last two years of Trump's presidency.
America First Refining said in a statement that a 168,000 barrel-per-day (bpd) refinery to be built at the port of Brownsville along the U.S.-Mexico border, when operating, would offset $300 billion in the U.S. trade deficit.
"This project represents a historic step forward for American energy production," said John V. Calce, chairman 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."
Many U.S. Gulf Coast refineries are unable to process light, sweet crude oil from fracking shale fields because they were configured in the last 40 years to run lower-cost heavy, sour crude, which is higher density and contains more sulfur.
Calce praised Trump for his administration's energy policy emphasizing production of U.S. crude oil by domestic refineries.
Reliance, India's largest private sector company, identified only as a "global supermajor" in the America First statement but named by Trump in a post on Truth Social, provided a "9-figure investment" at a "10-figure valuation."
Reliance also signed "a binding 20-year offtake term sheet" with America First meaning the company will buy products the refinery produces.
America First plans to break ground in the second quarter of this year, the company said.
Courtesy: www.reuters.com