Japan, US Reach $36 Billion Gas, Mineral Projects Deals

Speakers

Tyler Kendall — Bloomberg Reporter

Jon — Anchor

Summary

Japan has pledged up to $36 billion in investment for US oil, gas, and critical mineral projects as part of a trade deal.
Key projects identified include a natural gas facility in Ohio (potentially the largest in the US), a crude export facility off the Texas coast, and a synthetic industrial diamond plant in Georgia.
The deal structure splits profits 50/50 until Japan recoups its investment, after which the split shifts drastically to 90/10 in favor of the United States.
A strict enforcement mechanism requires Japan to fund projects within 45 days of announcement or face higher tariffs, creating immediate pressure to deploy capital.

Trade Ideas

Ticker	Direction	Speaker	Thesis	Time
ENERGY INFRASTRUCTURE /CRITICAL MINERALS /AI / ROBOTICS / RARE EARTHS	LONG	Tyler Kendall Multimedia Editor	Japan is investing $36 billion specifically into US "oil, gas, and critical mineral projects," including a massive natural gas facility in Ohio and a crude export hub in Texas. This represents a massive, government-mandated capital injection directly into the US energy and industrial base. The "45-day" funding requirement ensures this liquidity hits the market rapidly rather than being delayed by bureaucracy. The construction of the "largest" gas facility in the US will drive significant revenue for infrastructure builders and energy service providers in these regions. LONG US Energy Infrastructure and Critical Minerals sectors as the direct recipients of this inbound FDI. Regulatory hurdles or delays in project approval could stall the deployment of funds; the 90/10 profit split long-term is less favorable for the Japanese investors, potentially reducing their incentive to manage efficiently post-recoupment.	—
JAPANESE EQUITIES	WATCH	Tyler Kendall Multimedia Editor	Japanese exports to the US fell 5% in January, and the country faces a "higher tariff" threat if they do not fund these projects within 45 days of announcement. While Japanese global exports are rising, the US relationship is under pressure. This deal is effectively a "pay-to-play" agreement where Japan must invest capex to avoid tariffs. If they miss the 45-day funding window, tariff implementation would hurt Japanese exporters significantly. WATCH Japanese markets for confirmation of funding; failure to execute could trigger a bearish tariff event. Supreme Court rulings on broader tariffs (mentioned in the video regarding EPA tariffs) could complicate the trade environment regardless of this specific deal.	—