Japan to invest $36Billion in US Projects is a big development in the energy and industrial construction of the United States. The initial stage of investment is aimed at energy production, export facilities and high quality manufacturing. Consequently, the Engineering, Procurement, and Construction (EPC) contractors are looking forward to the execution of the projects on a multi-year basis.

In addition, the investment is a component of a larger bilateral Japanese and United States investment arrangement of $550billion. Thus, the infrastructure developers anticipate long-term capital investment in strategic areas.

Ohio Gas Power Megaproject 9.2 GW

The flagship development is a 9.2-gigawatt (GW) power plant which is a natural gas plant located in Portsmouth, Ohio. Upon completion of the facility, the facility will be among the biggest gas-fired plant in North America. Therefore, it will increase baseload capability and grid resilience.

The developers have classified more than $33 billion towards engineering, procurement, and construction works. Moreover, high capacity turbines, substations and transmission infrastructure will be installed by the contractors. The project will also demand a lot of civil works and balance-of-plant systems.

Moreover, the commissioning will be phased to achieve the stability of operations and grid synchronization. Consequently, several EPC packages will be biddered. Structural, mechanical and electrical scopes are some of the scopes that regional subcontractors are likely to take part in.

Texas Deepwater Export Terminal- GulfLink

Simultaneously, the Japanese capital will finance the Texas GulfLink crude oil export terminal in Brazoria County, Texas, which is worth 2.1 billion. The offshore deep-water terminal will enhance the U.S. crude export. Thus, marine engineering corporations will perform sophisticated offshore constructions.

The production incorporates offshore loading, subsea pipes and storage incorporation systems. Also, the contractors will utilize heavy-lift vessels and special dredging tools. This maritime facility will improve the export volumes and performance.

After its completion, the terminal would enable billions of dollars of yearly crude exportation. In line with this, port and logistics infrastructure upgrades will follow.

Diamond Refinery Plant

The third project is a synthetic diamond manufacturing plant of $600 million, based in Georgia. The plant will manufacture semiconductor tooling and precision manufacturing diamond grits of industrial grade. As a result, domestic supply chain resilience will be enhanced by the plant.

Construction departments will come up with pressure synthesis chambers and closed production systems. Moreover, high-tech ventilation and contamination-control systems will be provided. Such systems are vital in accuracy of material processing.

Furthermore, the center will incorporate automation systems to optimize on productivity. Consequently, it will contribute to the domestic industrial demand and export markets.

Implications of the Construction Market

Together, the projects constitute one of the biggest foreign-funded infrastructure injections in the recent American history. The construction industry will therefore be advantaged by the long term inflows of capital.

Thousands of construction jobs will be created in the power plant alone when it is at its peak. At the same time, the export terminal will raise the demand of marine engineering services. Also, specialized industrial construction segments will be stimulated by the manufacturing plant.

It is expected that more announcements of infrastructure will be carried out within the wider framework of investment, as observed by industry analysts. This is what has resulted in contractors fortifying procurement pipelines and supply chain collaborations.

In general, Japan to invest $36 Billion in US Projects reflects a logical increase of the power and industry construction volumes. With the implementation, the contracts, suppliers and equipment manufacturers will be competing in the provision of major infrastructural packages in various states.

The Louisiana LNG project of Woodside, an LNG export terminal worth $17.5 billion, is another major infrastructure project in U.S. energy that is progressing to the first production and expanding the Gulf Coast construction projects.

Project Fact Sheet

• Program Name: Japan to Invest $36 Billion in US Projects
• Initial Investment Phase: $36 billion
• Overall Bilateral Investment Framework: $550 billion

Portsmouth Natural Gas Power Plant

• Location: Portsmouth, Ohio
• Capacity: 9.2 GW
• Estimated Cost: $33 billion
• Scope: Gas turbines, transmission upgrades, civil works, EPC packages

Texas GulfLink Crude Export Terminal

• Location: Brazoria County, Texas
• Estimated Cost: $2.1 billion
• Scope: Offshore terminal, subsea pipelines, marine loading systems

Synthetic Diamond Manufacturing Facility

• Location: Georgia
• Estimated Cost: $600 million
• Scope: Industrial processing plant, high-pressure chambers, automated systems

Project Team

1. Portsmouth Natural Gas Power Plant (Ohio)

• Lead Developer / Operator: SB Energy
• Parent Company: SoftBank Group Corp.
• Potential Equipment Suppliers: Toshiba Corporation; Hitachi Ltd.; Mitsubishi Electric
• Scope Focus: Gas turbines, power island systems, grid integration, EPC packaging
• Financing Support: Japan Bank for International Cooperation; Nippon Export and Investment Insurance

2. Texas GulfLink Crude Export Terminal (Texas)

• Project Developer: Sentinel Midstream
• Marine & Offshore Engineering Interest: Mitsui O.S.K. Lines; MODEC Inc.
• Steel & Structural Supply Interest: Nippon Steel; JFE Holdings
• Scope Focus: Offshore loading platforms, subsea pipelines, storage integration, and marine logistics systems
• Financial Backing Support: Japan Bank for International Cooperation; Nippon Export and Investment Insurance

3. Synthetic Diamond Manufacturing Facility (Georgia)

• Facility Operator: Element Six
• Parent Company: De Beers Group
• Scope Focus: High-pressure synthesis chambers, precision-controlled production halls, automation systems, contamination-control engineering
• Strategic Objective: Domestic production of industrial diamond grit for semiconductor and advanced tooling markets
• Financing Support: Japan Bank for International Cooperation; Nippon Export and Investment Insurance