The landmark U.S. oil refinery project announced by President Donald Trump earlier this week marks a fundamental shift in global energy dynamics, with India’s Reliance Industries—controlled by Asia’s richest person, Mukesh Ambani—backing the deal, according to Chicago-based research firm Zacks Investment Research.

“The strategic rationale for Reliance’s massive U.S. bet is deeply intertwined with current geopolitical turbulence,” Zacks wrote in a research note. “Global oil supply chains have become increasingly precarious amid the ongoing geopolitical volatility, marked by escalating conflicts in the Middle East and Trump’s ‘Operation Epic Fury’ targeting Iranian influence.”

On Wednesday, Trump announced on his Truth Social platform that America First Refining would construct a new oil refinery at the Port of Brownsville, Texas. "This is a historic $300 billion dollar deal - the biggest in U.S. history," Trump wrote. "Thank you to our partners in India, and their largest privately held energy company, Reliance, for this tremendous Investment," he said.

Trump did not provide details of the project, which would be the first new oil refinery to be constructed in the U.S. in 50 years. Zacks said the project includes “a 20-year agreement for Reliance to process and distribute American shale oil, strengthening the India-based conglomerate’s presence in the U.S. energy sector.” Reliance did not reply to Forbes Asia’s emailed request for comments.

Separately, America First Refining said it received a nine-figure investment from a global company at a 10-figure valuation last month, along with a binding 20-year offtake deal to buy and process U.S. shale oil. The company said it expects to break ground on the project in the second quarter this year.

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"This is one of the most important energy infrastructure projects in America today," Trey Griggs, president of America First Refining, said in a statement. "The U.S. 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 refinery is expected to produce 1.2 billion barrels of light shale oil worth $125 billion and 50 billion gallons of refined products valued at $175 billion. The facility will have an annual capacity of 60 million barrels and will have a deep-water port for easier export distribution.

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“The venture stands to benefit from Reliance’s deep-seated operational knowledge,” Zacks said, noting that Reliance currently operates the Jamnagar Refinery—the world’s largest refining complex with a capacity of roughly 1.4 million barrels per day—in the western Indian state of Gujarat.

With a real-time net worth of $98.9 billion, Ambani is the wealthiest person in India and Asia, according to Forbes data. He chairs Reliance Industries, which has interests in energy, petrochemicals, telecommunications, retail, media and financial services.

© Forbes