Japan has announced plans to invest up to $36bn in oil, gas and mineral projects across the US as part of its wider $550bn commitment under a trade agreement negotiated with President Donald Trump.
The initial investments feature a natural gas facility in Ohio, a deepwater crude export terminal in the Gulf of Mexico, and a synthetic industrial diamond manufacturing plant in Georgia.
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According to information provided by US Commerce Secretary Howard Lutnick, Japan will direct as much as $33bn towards constructing the Ohio gas plant, which is expected to generate 9.2 gigawatts (GW) of electricity, equivalent to nine nuclear reactors or the power usage by about 7.4 million homes within the PJM Interconnection grid.
SB Energy, a SoftBank Group subsidiary, will manage the project.
Japanese companies Hitachi and Toshiba have also shown interest in participating, according to Japan’s Minister of Economy, Trade and Industry, Ryosei Akazawa.
The Texas GulfLink crude export terminal represents another major component of this investment tranche.
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By GlobalDataJapan intends to provide $2.1bn for this project, which will be operated by Sentinel Midstream and may enable up to $30bn in annual US crude exports at full capacity based on Commerce Department projections.
A further $600m is allocated for an industrial diamond grit facility involving Element Six, a De Beers subsidiary.
These synthetic diamonds are used primarily in advanced manufacturing applications within sectors such as semiconductors, automotive and energy.
The trade pact, originally announced last year, forms part of broader efforts between Japan and the US to strengthen supply chains in energy, minerals and AI. The selection of projects follows meetings of a joint panel that began its work last December.
However, Trump has the final say in choosing projects, for which he gets input from both an investment committee and Japanese officials.
Central to the deal is an arrangement on tariffs. The US agreed to set levies at 15% on Japanese imports while reducing duties on automobiles, an important sector for Japan’s economy, in exchange for increased investment through the $550bn fund.
If Japan does not follow through with funding for selected projects within 45 business days, the US may reintroduce higher tariffs or reclaim certain revenues.
Akazawa indicated that most allocations from the fund will come through loans or guarantees rather than direct cash injections; he previously estimated such investments would make up only one or two percent of the total amount pledged.
Financing is expected to involve entities such as the Japan Bank for International Cooperation and Nippon Export and Investment Insurance.
Preparations for these projects are advancing shortly before Prime Minister Sanae Takaichi’s upcoming meeting with Trump in Washington scheduled for 19 March.
The announcement follows Takaichi’s recent electoral win ahead of her formal re-election as premier by parliament.
Additional Japanese companies have expressed interest in both supplying materials for the GulfLink facility, including Mitsui OSK Lines, Nippon Steel, Modec, and JFE Holdings, and procuring products from the new diamond manufacturing plant, according to Akazawa.
The initial power generation investment coincides with rising demand linked to data centre expansion amid growth in AI applications.
During Trump’s previous visit to Japan, officials identified potential investments ranging from $350m up to $100bn involving energy, AI and critical mineral sectors, with companies such as SoftBank, Westinghouse and Toshiba named among likely participants.
Trump has previously noted delays implementing similar agreements with countries like South Korea, another key player in automobile exports, linking them directly with tariff policies tied to foreign investment commitments.
