South Korea is exploring a significant investment in a natural gas power project in Texas, which could mark the first major venture under its extensive $350 billion investment pledge to the United States. The proposed $22.3 billion project is set to be located in Encinal and would involve the construction of a 6.3-gigawatt gas-fired power plant. This development is aimed at addressing the increasing electricity demand spurred by the rapid growth of artificial intelligence data centers and advanced semiconductor facilities across Texas.
The initial investment consideration from South Korea was around $19.8 billion, while the United States initially sought about $25 billion for the project. Current negotiations have reportedly brought this figure closer to $22.3 billion, though the final investment amount and the plant’s generating capacity could still be subject to change. The project is planned to be executed in phases, commencing with the addition of approximately 1.4 gigawatts of gas turbine capacity. Subsequent stages could see up to 4.9 gigawatts of combined-cycle generation, contingent on future electricity demand and economic conditions.
Beyond the natural gas project, discussions between South Korea and the United States also include a potential large-scale nuclear program. As part of these talks, Washington has suggested allocating up to $120 billion from the investment fund to construct as many as eight large nuclear reactors. There is a possibility that South Korea’s APR100 reactor design could be used for two of these units, although these plans are still in the negotiation phase.
The broader $350 billion commitment from South Korea is divided into $200 billion for general U.S. investments and $150 billion designated to bolster the U.S. shipbuilding industry. Before finalizing the investment arrangements, Seoul is required to inform its National Assembly. A memorandum outlining the investment framework could be signed by the two countries as early as September 18, though discussions are still in progress. According to South Korea’s industry ministry, no conclusive decisions have been made regarding the Texas gas project or the proposed nuclear program in the U.S.