Japan Funds Massive U.S. Energy Expansion Under New Trade Agreement

The administration of U.S. President Donald Trump has announced three major infrastructure and energy projects worth a combined $36 billion to be financed by Japan under a broader bilateral investment agreement.

The projects which include an oil export terminal in Texas, an industrial diamonds manufacturing facility in Georgia, and a large-scale natural gas power plant in Ohio, mark the first investments under Japan’s $550 billion pledge to boost economic engagement with the United States.

President Trump disclosed the development on his Truth Social platform, noting that the investment commitment formed part of a trade deal that reduced the U.S. tariffs on Japanese imports to 15 per cent. Further technical details about the broader agreement were not immediately provided.

According to U.S. Commerce Secretary Howard Lutnick, the largest component of the package, is a $33 billion natural gas-fired power plant in Portsmouth, Ohio. Once completed, the facility is projected to have a generation capacity of 9.2 gigawatts, making it the largest gas-powered electricity plant in history.

The plant will be operated by SB Energy, a subsidiary of Japan’s technology investment giant SoftBank Group. Officials say the project will significantly expand U.S. baseload power capacity at a time when electricity demand is rising sharply, particularly due to the expansion of energy-intensive data centres supporting artificial intelligence technologies.

The White House also confirmed that Japan would invest in the $2.1 billion Texas GulfLink deepwater crude oil export facility, located off the Texas coast.

Commerce Secretary Lutnick said the terminal is expected to generate between $20 billion and $30 billion annually in the U.S. crude exports. He added that the project would strengthen export capacity for American refineries and reinforce the country’s position as a leading global energy supplier.

The Texas GulfLink project is being developed by Sentinel Midstream, which confirmed its participation in the initiative. The company described itself as “honoured to be a trusted partner” alongside the U.S. Department of Commerce and the Japanese government.

The investments underscore deepening U.S.–Japan economic ties amid shifting global trade dynamics. Analysts say the projects not only expand America’s energy infrastructure but also reflect Japan’s strategic effort to strengthen industrial and energy partnerships with Washington.

The third project, an industrial diamond manufacturing plant in Georgia, is expected to bolster domestic supply chains in advanced manufacturing sectors, although further details about the facility’s scale and timeline have yet to be disclosed.