In one move, Reliance Industries Ltd. has reset its relationship with Donald Trump.
Billionaire Mukesh Ambani’s conglomerate is in talks with America First Refining, with options ranging from an equity stake to offtake agreements or broader strategic partnerships, people familiar with the matter said, asking not to be identified as the information is private.
The potential deal underscores how Reliance is capitalising on shifting energy alliances as geopolitical conflicts chokes energy supplies. Although it didn’t name Reliance, Washington had last year accused India’s politically connected energy titans of war profiteering through purchases of discounted Russian crude.
But on Tuesday, President Trump announced the Brownsville project, calling it “the FIRST new U.S. Oil Refinery in 50 YEARS” and thanking Reliance for its role.
Still, the finer details of Reliance’s involvement remain fluid and under negotiations, the people said. The intent has been to help smooth out the bilateral relations, one person said.
Shift in Tone
That shift in tone reflects Washington’s recalibrated stance as Middle Eastern supplies tighten amid the Iran war. Brent, meanwhile, has jumped back above $100 a barrel after the Iran war led to more shipping turmoil in the Middle East, stoking fears of fuel shortages.Indian refiners, including Reliance, have bought about 30 million barrels of Russian oil after the US gave its green light for purchases to cope with a shortfall caused by the effective closure of the Strait of Hormuz. Reliance also resumed purchases of cargoes from Venezuela, after the US stepped in to oversee Caracas’s oil sales.
A Reliance representative didn’t reply to email seeking comments. The US Energy Department didn’t immediately respond to a request for more details.
“As the US expands its downstream chemical infrastructure, Reliance has emerged as a key strategic partner,” said Deven R Choksey, founder of DRChoksey FinServ, a boutique fund and wealth management firm.“Reliance provides the technical expertise and investment needed to bolster US downstream projects.”
Overseas Assets
The Ambani-led energy giant operates the world’s largest refining complex in Jamnagar, with a capacity of 1.4 million barrels a day and can process the dirtiest grades of crude oil, but has no overseas refining assets. A foothold in South Texas would help embed the company in the US energy landscape, as commercial interests align with diplomatic priorities.
The talks with America First follow a bilateral trade deal that reduced tariffs on Indian exports in exchange for commitments to diversify away from Russian energy.
The recent developments follow a period of intensive engagement by the Reliance leadership, which helped secure the 30-day Russian oil purchase waiver and made progress on deals involving Venezuelan interests, the people said.
Asia’s richest man has been on good terms with Trump in the past as well. In January last year, Ambani and his wife attended a pre-inauguration dinner in Washington thrown for Trump.
