As part of its $550 billion pledge under the trade deal it signed with President Donald Trump, Japan intends to invest $36 billion in US oil, gas, and vital mineral projects.
In his post, the US president further added, “Japan is now officially, and financially, moving forward with the FIRST set of Investments under its $550 BILLION Dollar Commitment to invest in the United States of America — part of our Historic Trade Deal to REVITALIZE the American Industrial Base, create HUNDREDS OF THOUSANDS of GREAT American Jobs, and strengthen our National and Economic Security like never before.”
According to a statement by Commerce Secretary Howard Lutnick, the largest investment is a natural gas facility in Ohio that is anticipated to produce 9.2 gigawatts of electricity. Trump referred to this enormous project as “the largest in History.”
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The gas plant, which will be run by SB Energy, a subsidiary of SoftBank Group Corp., is anticipated to get $33 billion from Japan, according to the Wall Street Journal, which cited unnamed Commerce Department sources.
As per a Bloomberg report, at maximum capacity, the plant would provide the same amount of electricity as nine nuclear reactors, or nearly 7.4 million homes on the largest US grid run by PJM Interconnection LLC.
The second project is a deepwater oil export terminal in the Gulf of Mexico. Trump provided a different explanation earlier in his social media post, stating that the money will go toward a liquefied natural gas facility off the Texas coast.
According to a Sentinel Midstream representative, the Texas GulfLink plant is an export project for crude oil.
Additionally, Japan is anticipated to invest in a plant for the production of synthetic industrial diamonds, which Trump’s post suggested will be situated in Georgia.
