By Benoît Morenne

Japan's largest utility company announced several long-term deals to buy billions of dollars worth of U.S. liquefied-natural gas late Wednesday. The Trump administration celebrated, with Energy Secretary Chris Wright describing the agreements as "yet another major milestone for President Trump's commitment to increase investment in the U.S. and unleash American dominance."

The reality is a bit more complex. Jera, the Japanese utility, signed four deals to secure up to an annual 5.5 million tons of LNG over 20 years. But only two were binding agreements.

One, signed with developer NextDecade, was made public last month. The second, procuring 1 million tons of LNG from a Gulf Coast terminal being developed by Commonwealth LNG, was announced for the first time Wednesday.

The two remaining deals, signed with a unit of Cheniere Energy, and with Sempra Infrastructure, are preliminary agreements. These typically lead to final agreements after a developer has decided to invest in liquefaction units-which can take months.

The announcement comes as Tokyo strives to reach a trade deal with the U.S. to save its manufacturing sector, which is taking a hit from tariffs. Japan currently faces a 10% tariff on its exports to the U.S., as well as duties on cars, steel and aluminum. Its trade with the U.S. has remained in the black, but its surplus has been shrinking in recent months.

The Energy Department said the aggregate agreements are projected to support more than 50,000 U.S. jobs and add more than $200 billion to U.S. GDP according to an analysis by S&P Global. A department spokesman said Jera commissioned the study.

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June 12, 2025 06:28 ET (10:28 GMT)

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