New Port of Brownsville Refinery Project Announced

Summary: The planned America First Refining oil refinery at the Port of Brownsville, the first new project of its kind on the US Gulf Coast in nearly 50 years, signals a major expansion of US refining capacity and reinforces South Texas as a strategic energy and logistics hub closely linked to Mexican industry. The project, alongside LNG and steel investments tied to companies such as Ternium, could reshape regional supply chains by increasing cross-border energy, industrial and raw material flows between the United States and Mexico. Mexico’s manufacturing, steel, and energy sectors can benefit from this project, as they depend heavily on the port’s binational logistics network and integrated North American trade infrastructure.

The Port of Brownsville announced the America First Refining project, a new oil refinery that would become the first built on the United States Gulf Coast in nearly five decades, reinforcing South Texas as a strategic hub for the energy industry. The announcement was made during a press conference at the port’s administrative offices after the project was referenced March 10 on social media by President Donald Trump. 

The refinery will be constructed on more than 240 acres within the port and is designed to process 100% US-origin shale oil using advanced hydrogen-powered systems to produce ultra-low-carbon fuels, according to the developer, America First Refining. Officials said the project represents one of the most significant energy investments in the region in recent decades.

The refinery is expected to generate 500 permanent direct jobs in addition to thousands of indirect jobs tied to construction, logistics and long-term industrial operations. Esteban Guerra, President, Brownsville Navigation District, said the selection of the port underscores the region’s logistical and industrial capacity. “This announcement is a defining moment for our region,” Guerra said. “America First Refining chose us because we have the land, infrastructure, workforce and commitment to make this project a reality.”

Meanwhile, William Dietrich, director and CEO of the port, said the project strengthens the port’s position as a major US energy logistics hub. “This project positions the Port of Brownsville as a critical energy node in the United States and elevates the entire Rio Grande Valley onto the national and international stage,” Dietrich said.

Infrastructure and Environmental Considerations

Port officials noted that the facility will leverage the port’s existing infrastructure, including deep-water channel access, rail connectivity, dock facilities and foreign trade zone advantages, which have helped transform the port into a growing industrial corridor along the Gulf Coast. Developers said the refinery will incorporate hydrogen-based processing technologies and cleaner fuel systems aimed at reducing emissions and meeting, or exceeding, federal and state environmental regulations.

The company is currently working with federal, state and local agencies to secure the necessary environmental permits. Both the port and the developer emphasized that coastal ecosystems, water bodies and community health will remain priorities throughout the permitting and construction phases, with periodic updates planned for the public.

Port of Brownsville Expands Role in US-Mexico Logistics

The refinery announcement comes as the port continues strengthening its role in the binational logistics chain between the United States and Mexico. According to Guillermo Rico, Director of Business Development and Marketing, Port of Brownsville, cargo movement through the port is projected to reach 30Mt by the end of 2025, up from 28Mt in 2024, reported MBN. 

Speaking during the Southern Border Conference organized by the Mid Valley Customs Brokers Association, Rico Leal highlighted the port’s unique position in regional trade. “The Port of Brownsville is the only seaport on the border up to El Paso, and we are a fundamental piece for the logistics chains that Mexican and US industries require,” he said.

About 90% of the port’s operations are linked to Mexican industry, reinforcing supply chain integration between the two countries. The port provides multimodal logistics services, including rail, barges and trucking, and specializes in project cargo and specialized goods, though it does not operate container services.

Growing cargo volumes are being driven by significant investments in steel, energy and logistics across the port’s industrial complex. Companies such as Forza Steel and Ternium are expanding their presence. Ternium México, the port’s largest steel customer, moved about 5.5 million tons of slab through the port last year.

The steelmaker is investing between US$3 billion and US$4 billion in a new plant in Monterrey, in the state of Nuevo Leon, aimed at producing slabs domestically and reducing reliance on imports from Brazil, reported MBN.  To support the expansion, the company is building a US$200 million terminal on nearly 200 acres at the port, which will increase raw material shipments by about 3 million tons, including iron ore and pig iron. Once operational, Ternium is expected to transport an additional 3Mt by rail, bringing its total cargo volume at the port to about 9Mt annually.

Energy Megaprojects on the Horizon

Additional large-scale energy projects are expected to further reshape the port’s role in global energy markets. One of the most significant is Rio Grande LNG, an US$18.4 billion liquefied natural gas export facility designed to cool natural gas to about -127°C, reducing its volume by roughly 600% to facilitate transportation. If two additional production trains are approved, total investment in the project could reach US$25 billion, Rico Leal said.

Another major development is Texas LNG, a US$5 billion LNG facility planned near the entrance of the port channel. With these projects, port officials estimate cargo throughput could rise from 30 million tons annually to as much as 80 million tons within five years, potentially placing the Port of Brownsville among the Top 20 ports in the United States by cargo volume.

Officials say the expansion will generate high-paying, highly skilled jobs while strengthening the port’s role as a key logistics platform serving industries across North America.