US and Japan unveil $36bn of oil, gas and critical minerals projects in challenge to China [View all]

Source: The Guardian

Wed 18 Feb 2026 01.02 EST
Last modified on Wed 18 Feb 2026 01.04 EST


Japan has drawn up plans for investments in US oil, gas and critical mineral projects worth about $36bn under the first wave of a deal with Donald Trump.

The US president and Sanae Takaichi, Japan’s prime minister, announced a trio of projects including a power plant in Portsmouth, Ohio, billed by the Trump administration as the largest natural gas-fired generating facility in US history.

As a diplomatic row between Japan and China over the security of Taiwan continues, testing the Japanese economy, Takaichi said the projects would strengthen her country’s ties with the US. While Takaichi did not directly mention China, she expressed hope in a statement that the investments would enhance Japanese and US economic security.

“Our massive trade deal with Japan has just launched,” Trump declared in a social media post. The White House said Japan would also invest in a deepwater crude oil export facility off the coast of Texas, and a synthetic industrial diamond manufacturing site. The projects are the first batch of the $550bn Japan committed to invest under a trade deal with the US last year. In return, Trump agreed to reduce US tariffs on Japanese exports including cars.

Read more: https://www.theguardian.com/business/2026/feb/18/us-japan-critical-minerals-agreement-oil-gas-projects-deal