As part of its ambitious $350 billion investment commitment to the United States, South Korea is eyeing a substantial natural gas power project in Texas, potentially marking its inaugural major investment under this pledge. The envisioned project, located in Encinal, Texas, would see the construction of a 6.3-gigawatt gas-fired power plant. This development aims to cater to the surging electricity needs, spurred by the rapid establishment of AI data centers and cutting-edge semiconductor plants in the region.
Initially, South Korea considered a $19.8 billion investment, while U.S. interests had anticipated a $25 billion deal. Through ongoing negotiations, the two sides have reportedly converged on a figure of approximately $22.3 billion, although details regarding the final investment amount and the plant’s generating capacity remain open to adjustment. The proposed project is planned to unfold in phases, beginning with the installation of about 1.4 gigawatts of gas turbine capacity. Subsequent phases could expand to include up to 4.9 gigawatts of combined-cycle generation, contingent on future electricity demand and economic factors.
In addition to the Texas gas project, discussions between South Korea and the United States are also exploring the potential for a large-scale nuclear program. The U.S. has proposed earmarking up to $120 billion from the investment package to construct as many as eight large nuclear reactors. These talks include the consideration of South Korea’s APR100 reactor design, potentially for use in two of these units.
The broader $350 billion investment commitment includes $200 billion dedicated to a range of U.S. investments, alongside $150 billion aimed at bolstering the American shipbuilding industry. Before finalizing any agreements, South Korea is obligated to consult with its National Assembly. The two nations are working towards signing a memorandum that would establish the framework for these investments, with a potential signing date as soon as September 18, although negotiations are still in progress.
South Korea’s industry ministry has indicated that no definitive decisions have been reached concerning either the natural gas project in Texas or the proposed nuclear program in the United States. The outcomes of these discussions are expected to play a significant role in shaping the future of energy and industrial cooperation between the two countries.
