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A landmark energy deal between Japan’s largest power generation company, JERA Co., Inc., and multiple U.S. liquefied natural gas (LNG) producers is set to bolster the U.S. economy by creating over 53,000 jobs and contributing approximately $215 billion to the nation’s GDP over the next two decades. Finalized in June 2025, this series of 20-year agreements for up to 5.5 million tonnes per year of American LNG underscores a strengthening energy partnership between the United States and Japan, with significant benefits for Gulf Coast states and broader implications for global energy security.
.@SecretaryWright on JERA agreements with U.S. LNG producers: “This is a huge win for America…If we can get the One Big Beautiful Bill across the finish line we will see many, many more such wins as this.” pic.twitter.com/SL9obVCiHx
— U.S. Department of Energy (@ENERGY) June 12, 2025
Details of the Deal
JERA, Japan’s leading power provider and one of the world’s largest LNG buyers, has signed four long-term agreements with U.S. companies, including NextDecade Corporation, Commonwealth LNG, Sempra Infrastructure, and Cheniere Marketing LLC. These contracts involve both binding sales and purchase agreements and nonbinding heads of agreements, ensuring a steady supply of LNG from America’s Gulf Coast to Japan. The deals, announced at the U.S. Department of Energy headquarters in Washington, D.C., on June 11, 2025, align with President Donald Trump’s Energy Dominance agenda, which has prioritized expanding U.S. LNG exports by removing regulatory barriers and resuming approvals for non-Free Trade Agreement (FTA) export projects.
According to S&P Global analysis, the agreements are projected to:
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Create over 53,000 jobs annually across the U.S., spanning construction, operations, and related industries.
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Contribute $215 billion to U.S. GDP, driven by LNG production, infrastructure development, and export revenues.
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Enhance energy security for Japan, the world’s second-largest LNG importer, by diversifying its supply sources away from volatile markets like Russia.
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Stabilize energy prices for Japanese consumers through long-term contracts that mitigate market volatility.
The agreements were celebrated by U.S. Energy Secretary Chris Wright and Interior Secretary Doug Burgum, who serve as Vice Chair and Chair of the National Energy Dominance Council, respectively. JERA’s Global CEO and Chairman, Yukio Kani, emphasized the deals as a “win-win” for both nations, highlighting their role in securing Japan’s energy future while supporting sustainable economic growth in the U.S.
States Benefiting from the Deal
The economic benefits of this deal are expected to be concentrated in the Gulf Coast states, where LNG production and export facilities are primarily located. These states—Louisiana, Texas, Alabama, and Mississippi—are poised to see significant job creation and economic growth due to their established energy infrastructure and proximity to LNG export terminals. Here’s a breakdown of the potential impacts:
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Louisiana: Home to major LNG facilities like Cheniere Energy’s Sabine Pass and Commonwealth LNG’s planned terminal in Cameron Parish, Louisiana is expected to be a primary beneficiary. The state’s LNG sector already supports thousands of jobs, and this deal will further boost employment in construction, maintenance, and operations. In Q1 2025, Louisiana received a portion of the $353.6 million in energy revenues disbursed by the Department of the Interior to Gulf states, and increased LNG exports will likely amplify such funds.
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Texas: Texas hosts NextDecade’s Rio Grande LNG project in Brownsville and Sempra Infrastructure’s Port Arthur LNG facility. The Rio Grande project, which includes a fifth liquefaction train dedicated to JERA’s 2 million tonnes per annum supply, is a cornerstone of this deal. Texas’s robust energy workforce and port infrastructure will see substantial job growth, particularly in engineering, logistics, and terminal operations. The state’s coastal counties are also set to benefit from federal energy revenue sharing.
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Alabama and Mississippi: While these states have fewer LNG terminals, they play critical roles in the Gulf Coast energy ecosystem. Alabama’s Mobile County and Mississippi’s coastal parishes will benefit from spillover economic activity, including supply chain jobs, transportation, and support services for LNG exports. The Department of the Interior’s energy revenue disbursements in 2025 have already supported these states’ coastal economies, and increased LNG activity will further enhance local budgets.
The job creation estimate of 53,000 includes direct employment at LNG facilities, indirect jobs in industries like manufacturing and transportation, and induced jobs from economic activity generated by energy workers’ spending. These opportunities will particularly benefit skilled tradespeople, engineers, and local businesses in the Gulf region.
JERA: The Japanese Company Driving the Deal
JERA Co., Inc., established in 2015 as a joint venture between Tokyo Electric Power Company and Chubu Electric Power Company, is Japan’s largest power generation company, producing one-third of the country’s electricity. As a global energy leader, JERA is a major player in LNG procurement, importing approximately 35 million tonnes annually to fuel Japan’s power plants. The company’s strategic focus on diversifying its LNG portfolio and enhancing energy security aligns with Japan’s broader energy policy, which seeks to balance reliance on fossil fuels with growing investments in renewables and nuclear power.
Under the leadership of Global CEO Yukio Kani, JERA has prioritized long-term, flexible LNG contracts to shield Japanese consumers from price volatility and ensure supply stability. The agreements with U.S. suppliers offer “unique flexibility and reliability,” according to Kani, allowing JERA to adapt to seasonal demand fluctuations and global market shifts. JERA Global Markets, the company’s LNG optimization arm, will leverage these contracts to enhance cost competitiveness and support Asia’s energy transition.
Japan’s Ministry of Economy, Trade, and Industry (METI) has endorsed the deals, noting their importance for securing a stable and flexible LNG supply for thermal power generation. METI’s support reflects Japan’s strategic push to strengthen ties with reliable energy partners like the U.S., especially amid geopolitical tensions and trade negotiations with Washington.
Broader Context and Implications
This deal comes at a pivotal moment for U.S.-Japan energy relations. The United States, the world’s largest LNG exporter, shipped 11.9 billion cubic feet per day in 2024, a figure bolstered by Trump’s January 2025 decision to lift a moratorium on new export permits. The agreements with JERA build on earlier contracts, such as NextDecade’s 20-year deal to supply 2 million tonnes per annum from Rio Grande LNG’s fifth train and Kyushu Electric Power’s plan to purchase 1 million tonnes annually from Energy Transfer’s Lake Charles project.
For Japan, the deals are part of a broader effort to diversify LNG sourcing away from Russia, which supplies 9% of Japan’s 74.3 million tonnes of annual imports through the Sakhalin project. The agreements also align with Japan’s response to growing power demand, driven by the global AI boom and the country’s gradual restart of nuclear reactors post-Fukushima.
However, economic and environmental challenges remain. Critics, including the Institute for Energy Economics and Financial Analysis (IEEFA), argue that rising U.S. liquefaction costs, potential tariffs on steel, and domestic gas demand from data centers could hinder LNG export growth. Additionally, environmental concerns about methane emissions from LNG production persist, though JERA and U.S. producers emphasize the role of LNG as a cleaner transitional fuel compared to coal.
Conclusion
The JERA-U.S. LNG agreements mark a significant milestone in the global energy landscape, reinforcing the United States’ position as a leading LNG exporter and Japan’s role as a key energy partner. Gulf Coast states—Louisiana, Texas, Alabama, and Mississippi—stand to gain thousands of jobs and billions in economic activity, while JERA secures a reliable LNG supply to power Japan’s future. As both nations navigate trade negotiations and energy transitions, this $215 billion deal exemplifies the economic and strategic power of LNG in shaping a secure and prosperous energy future.
Sources: U.S. Department of Energy, Reuters, The Japan Times, S&P Global, IEEFA
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