South Korea Chooses Texas Power Plant for First U.S. Investment

South Korea has officially chosen a gas-fired power plant in Texas as its first investment project in the United States, marking a significant step in enhancing energy cooperation between the two nations.

The project, valued at approximately $22.3 billion, aims to establish a power plant with a capacity of 6.3 gigawatts in Encinal, Texas. This initiative is part of South Korea's broader commitment to invest $350 billion in the U.S., which includes plans for additional projects in nuclear energy and liquefied natural gas.

Industry Minister Kim Jung-kwan presented these plans to the parliamentary trade committee, emphasizing the importance of this investment for meeting the growing energy demands of semiconductor plants and AI data centers in Texas. The projected revenue from the power plant is estimated to reach $45.4 billion over the next two decades.

Negotiations for this project have been ongoing for several months, following a joint fact sheet agreement established after a summit between President Lee Jae Myung and U.S. President Donald Trump. The agreement outlines South Korea's investment commitments and aims to facilitate lower U.S. import tariffs.

While the Texas power plant project is moving forward, plans for further investments in nuclear reactors and liquefied natural gas require additional discussions with U.S. authorities to finalize details and ensure compliance with regulations.