The share price of Reliance Industries Limited saw modest gains on Thursday following an announcement by US President Donald Trump that the Mumbai-headquartered Fortune 500 company will invest in a $300 billion refinery project in Brownsville, Texas.
On Thursday, the share price of Reliance edged higher to ₹1,402.50, up by just 0.88% from the previous close of ₹1,390.20. The stock is still down by 0.91% over the past five trading days.
Backing from India’s Largest Private Sector Corporation
The stock ticked up after Trump announced that the US will build its first major refinery in almost half a century with funding from Reliance Industries, India’s largest private sector corporation by market capitalization and the 86th largest company worldwide.
The conglomerate accounts for 7% of India’s total merchandise exports and owns the world’s largest oil refinery in Jamnagar, India.
New US Refinery In Almost Half a Century
If the project gets completed, it would be the first major refinery project in the US since Marathon’s facility in Garyville, Louisiana came online in 1977.
“For years, investors believed building a new refinery in the United States was impossible,” said Nick Ayers, a former White House official and incoming Vice Chairman of America First Refining, the company behind the project. “This project is a bet on American production, American workers, and the long-term strength of our domestic energy economy.”
Cleanest Refinery in the World
Trump made the announcement as the intensifying conflict in the Middle East elevated global oil prices. The planned refinery is designed to process 100% American shale oil.
“A new Refinery at the Port of Brownsville will fuel US 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,” Trump said, according to Offshore Technology.
“It will power Global Exports, and bring THOUSANDS of long overdue Jobs and Growth to a Region that deserves it. This is what AMERICAN ENERGY DOMINANCE looks like. AMERICA FIRST, ALWAYS!”
Source: https://coinpaper.com/15378/reliance-stock-rises-after-trump-backs-300-b-us-refinery
