U.S. Secretary of State Marco Rubio is visiting the Jamnagar plant of Reliance Industries to discuss refining energy supplies from the Western Hemisphere. The visit centers on the world's largest single-site refinery, which has a crude processing capacity of 1.4 million barrels per day.
In an interview with India's Network 18, a media outlet owned by Reliance, Rubio stated that the United States wants to "work together more closely" with the company. He described this cooperation as beneficial for both India and the U.S. Rubio highlighted Reliance's "extraordinary" refining capacity as a way for India to diversify its energy supplies, specifically noting the potential for greater purchases of Venezuelan crude.
Reliance has become the largest buyer of Venezuelan crude outside of the United States as of the end of September. This shift aligns with efforts by U.S. President Donald Trump to encourage India to replace Russian oil barrels with Venezuelan supply. While state-owned Indian oil companies have made opportunistic purchases, Reliance has been the primary buyer in this market. Rubio noted that Venezuela is increasing energy production and that India has a long history of refining such crude.
The diplomatic visit also touches on a major infrastructure project announced in March. Trump stated that the U.S. would build its first new oil refinery in 50 years with investment from Ambani's Reliance. In a post on Truth Social, Trump called it a "HISTORIC $300 BILLION DOLLAR DEAL" and described it as the largest in U.S. history. However, Reliance has not confirmed the size of this investment or made an official announcement about the project.
Pramit Pal Chaudhuri, South Asia practice head at Eurasia Group, told CNBC that the lack of confirmation from Reliance creates uncertainty around the deal. Chaudhuri suggested that Rubio aims to "clinch" the agreement or advance it further during the visit. Rubio told Network 18 that Reliance has already invested in increasing refining capacity within the United States.
The timing of the visit coincides with rising diesel prices in the U.S. ahead of midterm elections. Diesel costs impact truckers, farmers, and shippers, and are expected to remain high going into next year. At a press conference on Tuesday, Rubio referred to India as a "refining superpower" due to its ability to process heavy crude. Chaudhuri explained that Indian and Chinese refineries are particularly skilled at handling heavy and medium-heavy crude from Venezuela and Russia, which is better suited for producing diesel.