Trump Reveals Plan to Build New Refinery Near US Border

US President Donald Trump announced plans to build a new oil refinery in Brownsville, Texas, near the US-Mexico border, and thanked Indian energy company Reliance Industries for supporting the project with a large investment. After the refinery is built at the port of Brownsville, it will be able to process about 168,000 barrels of oil per day. 

The U.S. President shared the news at a time when gasoline prices in the United States are increasing because of the conflict between the US, Israel, and Iran. At the same time, political parties can also prepare for important midterm elections that will decide which party controls the U.S. Congress. 

According to the company, construction of the refinery is expected to begin in the second quarter of this year. The refinery project is being developed by a company called America First Refining. Its chairman, John V. Calce, the founder and chairman of America First Refining, said, “For the ​first time in half a century, the United States will build a new refinery designed specifically for American shale oil.” 

Many ⁠US Gulf Coast refineries are not able to process lightweight, sweet crude oil from fracking shale fields because they were set up in the last 40 years to run ​lower-cost heavy, sour crude, which is higher density and contains more sulfur. 

Supporters believe that this project will increase US energy production, reduce the trade deficit, and generate employment. Reliance Industries has also signed “a binding 20-year offtake term sheet” with America to buy fuel and other products produced by the refinery. 

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However, some believe that this new plan to build a new refinery is a waste because Texas already has many large refineries. Some analysts believe the Brownsville refinery may mainly produce fuel for export to South America and other countries.