HOUSTON, Texas: U.S. President Donald Trump on Tuesday announced plans for a new oil refinery on the southern U.S. border backed by India's Reliance Industries, the operator of the world's largest refining complex.

The announcement comes as gasoline prices surge following the start of the U.S.-Israeli war with Iran and as Republicans and Democrats prepare for midterm elections that could determine which party controls Congress during the final two years of Trump's presidency.

"Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment," Trump said on the social media platform Truth Social.

The proposed refinery, with a capacity of 168,000 barrels per day, will be built at the port of Brownsville, according to startup America First Refining. The company said the project would help offset US$300 billion in the U.S. trade deficit with India.

Reliance did not respond to a request for comment. "For the first time in half a century, the United States will build a new refinery designed specifically for American shale oil," said America First chairman and founder John V. Calce.

Many existing Gulf Coast refineries were configured over the past several decades to process heavier, high-sulfur crude oil rather than the lighter shale crude produced from U.S. fracking fields.

America First said a "global supermajor" had made a "9-figure investment" at a "10-figure valuation," identifying Reliance as the investor. The Indian conglomerate has also signed "a binding 20-year offtake term sheet" with the company, agreeing to purchase products produced by the refinery.

America First said it plans to break ground on the project in the second quarter of this year.

Industry analysts expressed skepticism about the need for a new refinery on the Gulf Coast, which already hosts eight of the ten largest refineries in the United States.

"Initial announcements like this by the Trump administration have a lot of hyperbole," said Refined Fuels Analytics managing director John Auers.

Trump said the refinery would "fuel U.S. markets, strengthen our national security, boost American energy production, deliver billions of dollars in economic impact, and will be the cleanest refinery in the world."

Analysts noted that Brownsville's location could point to an export-focused facility rather than one primarily serving domestic demand.

"If Brownsville is indeed the location for the build, I would assume that they are looking at an export refinery," said Tom Kloza, principal analyst at Kloza Advisors. "There is not much local demand and there are not pipeline connections to take Brownsville product elsewhere."

U.S. refineries already supply large volumes of motor fuel and heating oil to South America, Kloza added, while benefiting from relatively low costs for natural gas, hydrogen, and domestic crude oil.

"Let's see what develops," he said. "Reliance is a very successful company."

Reliance operates the 1.4 million barrels-per-day refining complex in Jamnagar, India, the world's largest. The company reported $125 billion in revenue last year and also runs businesses in retail, digital services, media, and new energy.