Can Fluor's Refinery Project Reshape US Energy Logistics?

The decision to build America's first new refinery in over 50 years represents a significant moment for domestic energy infrastructure.

As Fluor Corporation takes on the engineering and design of this large-scale facility in Texas, the project highlights growing concerns about supply chain vulnerabilities and the need for more resilient logistics networks in the oil sector.

The US has experienced significant imbalances in its oil supply chain operations. Between 2014 and 2024, the country imported 28 billion barrels of crude oil while exporting nearly 10 billion barrels overseas.

This gap illustrates the complex logistics challenges and supply chain dependencies that have made America vulnerable to global disruptions. When oil supply chains face interruptions, the impacts ripple across industries, leading to price volatility and resource scarcity that can bring operations to a standstill.

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Strengthening domestic infrastructure

America First Refining (AFR) is addressing these supply chain weaknesses by developing a hydrogen-powered refinery in Brownsville, Texas. The facility aims to redirect up to 60m barrels annually from international supply routes to domestic processing channels, potentially reducing logistics complexity and transportation costs associated with imported crude oil.

The project, currently in Phase I of construction, has selected Fluor Corporation to engineer and design the facility. According to AFR, the refinery will utilise commercially proven technologies from leading American and global engineering firms to produce high-octane, cleaner fuels.

The facility will process American shale oil into gasoline, jet fuel and diesel, creating a more direct supply chain from domestic extraction to refined products.

The use of excess produced hydrogen could enable the production of low-emission fuels, potentially positioning the facility as infrastructure that addresses both supply chain resilience and environmental considerations. However, the full logistics implications of hydrogen integration remain to be seen as the project develops.

Logistics advantages and positioning

The facility's location within the Port of Brownsville offers significant supply chain benefits. This deep-water port, spanning 40,000 acres, is the largest land-owning public port authority in the US and serves as a key hub for energy, shipbuilding and ship recycling. The port's existing infrastructure for handling natural gas liquids, bulk petroleum, refined products and other specialised bulk liquids could provide efficient distribution networks for the refinery's output.

Situating the complex within a foreign trade zone adds another logistics dimension, potentially offering supply chain advantages related to customs procedures and inventory management. The port's role as a transportation and industrial growth hub suggests the refinery will benefit from established logistics networks and infrastructure that can support both inbound crude oil deliveries and outbound refined product distribution.

Fluor Corporation brings relevant experience to the infrastructure challenges. The American engineering and construction company provides services across oil & gas, industrial & infrastructure and government & power sectors. With headquarters in Texas and more than 50 years of experience in engineering, procurement, construction and maintenance services, Fluor will execute the front-end engineering and design for the facility.

"We are honoured to partner with America First Refining on this landmark US project," says Pierre Bechelany, Fluor's Business Group President of Energy Solutions.

"Together, AFR and Fluor bring deep technical expertise and proven project‑delivery capabilities, positioning the project for successful execution. This collaboration reflects both companies' commitment to advancing the nation's refining infrastructure."

The contract value remains undisclosed, though Fluor is set to recognise it in the first quarter of 2026. Following completion, the facility is estimated to process more than 60 million barrels of domestic crude oil annually, which could represent a significant shift in domestic supply chain flows and reduce dependence on international logistics networks that have proven vulnerable to disruption.

This infrastructure development reflects broader efforts to build more resilient domestic supply chains across industries. By establishing processing capacity closer to extraction points and major distribution hubs, the project could reduce transportation distances, simplify logistics coordination and create redundancy in refining capacity that might prove valuable during future supply chain disruptions.