South Korea is weighing a significant investment in the United States through a $22.3 billion natural gas power project in Texas, marking one of its first major undertakings from a broader $350 billion commitment to the US. This ambitious plan involves constructing a 6.3-gigawatt gas-fired power plant in Encinal, aiming to cater to the increasing electricity needs spurred by the rapid growth of AI data centers and advanced semiconductor facilities across Texas.
Initially, South Korea had proposed to invest about $19.8 billion in the project, while the US was seeking closer to $25 billion. Ongoing negotiations have reportedly brought the sides closer, settling around $22.3 billion, although the final investment figure and the plant’s generating capacity remain subject to change. The project is designed to be implemented in phases, beginning with the addition of approximately 1.4 gigawatts of gas turbine capacity. This would be followed by up to 4.9 gigawatts of combined-cycle generation, contingent on future electricity demand and overall economic conditions.
Beyond this, the discussions between South Korea and the US extend into the realm of nuclear energy. Washington has floated the idea of dedicating up to $120 billion from the investment package towards a large-scale nuclear program. This plan could see the construction of as many as eight large nuclear reactors, with talks including the potential use of South Korea’s APR100 reactor design for two of these units.
The broader $350 billion commitment is divided into $200 billion for extensive US investments and $150 billion directed at bolstering the US shipbuilding industry. Before any investment arrangements are finalized, South Korea is obligated to present details to its National Assembly. The two nations are contemplating signing a memorandum that would outline the investment framework as soon as September 18, although the negotiations are still in progress. According to South Korea’s industry ministry, no conclusive decisions have been made regarding either the Texas natural gas project or the proposed nuclear initiative in the US.