US President Donald Trump revealed plans to build a new oil refinery on the southern US border, backed by India’s Reliance Industries, the operator of the world’s largest refining complex, Reuters reported.
The announcement comes as US drivers face rising gasoline prices since the start of the US -Israeli war with Iran, and as Republicans and Democrats prepare for midterm elections that will determine which party controls Congress during the final two years of Trump’s presidency.
According to a statement from startup America First Refining, the 168,000 barrels per day (bbl/d) refinery will be built at the Port of Brownsville. The project is expected to help offset $300 billion in the US trade deficit with India.
Reliance has entered into a binding 20-year offtake term sheet with America First company to procure products from the refinery. This strategic move is expected to reduce India’s trade surplus with the US, an issue that has previously been a point of contention for President Donald Trump.
The announcement comes amid heightened tensions in the Middle East following the outbreak of the US -Israeli war with Iran, which has disrupted energy markets and contributed to rising global oil and fuel prices. The volatility has renewed concerns in the US over fuel supply security and gasoline costs.
