20-Year Offtake Deal Supports First New U.S. Refinery in 50 Years
America First Refining has secured a 20-year offtake agreement and major capital investment to support construction of a new refinery at the Port of Brownsville, potentially the first new U.S. refinery built in five decades.
(P&GJ) — America First Refining said it has secured a 20-year offtake agreement and new capital investment to support construction of a refinery planned at the Port of Brownsville, Texas, a project the company says would mark the first new refinery built in the United States in roughly five decades.
The company said the agreement includes a nine-figure investment from a global energy company and a binding long-term offtake arrangement to purchase refined products produced at the facility. America First Refining plans to break ground on the project in the second quarter of 2026.
According to the company, the refinery will be designed to process U.S. light shale crude and could process roughly 60 million barrels per year once operational.
"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. Thanks to President Trump's leadership and the resurgence of an America First energy policy, we are creating thousands of high-quality jobs while ensuring more of our nation's energy resources are refined here at home in the cleanest, most efficient refinery on the planet."
The facility is expected to produce gasoline, diesel and jet fuel and will be located at a deep-water port that allows refined products to reach both domestic and international markets.
Company officials said the project is intended to address a mismatch between the type of crude produced in the United States and the configuration of many existing refineries, which were historically designed to process heavier imported crude.
"This is one of the most important energy infrastructure projects in America today," said Trey Griggs, President of America First Refining. "The United States has a surplus of light shale oil but a shortage of refining capacity designed to process it. By building this refinery at the Port of Brownsville, we're unlocking a major expansion of American energy production while creating thousands of high-paying jobs and strengthening our domestic supply chain."
The agreement supporting the project includes long-term commitments tied to U.S. shale oil production. According to the company, the arrangement could involve processing approximately 1.2 billion barrels of U.S. shale crude over the life of the agreement and producing an estimated 50 billion gallons of refined products.
"For years, investors believed building a new refinery in the United States was impossible," said Nick Ayers, incoming Vice Chairman of America First Refining and a former White House official. "What changed was leadership and policy. President Trump's America First energy agenda restored the confidence needed to invest in large-scale American energy infrastructure. This project is a bet on American production, American workers, and the long-term strength of our domestic energy economy."
America First Refining said the project will be located in a federally designated economic opportunity zone near the Port of Brownsville and is expected to create thousands of jobs during construction and operation.
Financial advisory services for the transaction are being provided by Cantor Fitzgerald.