Prime Highlights

• South Korea and the US have reportedly agreed on a $22.3 billion Texas gas plant investment, Seoul’s first under last year’s trade deal.
• The 6.3-gigawatt plant in Encinal, Texas, is planned to help meet rising power demand from AI data centres.

Key Facts

• South Korea’s Industry Ministry says talks with Washington are ongoing and the report’s details cannot yet be confirmed.
• Seoul is also weighing other US projects, including a nuclear plant and an Alaska LNG project.

Background

South Korea and the United States have agreed on the size of Seoul’s planned investment in a gas project in Texas, valued at around $22.3 billion, Korean media outlet Edaily reported, citing unnamed officials and politicians.

The project would mark Seoul’s first U.S. investment under last year’s trade agreement. It aims to build a 6.3-gigawatt gas plant in Encinal, Texas, to help meet growing power demand from AI data centres, according to the reports.

The investment would form part of the trade deal signed by the two allies last year, under which Seoul committed to $350 billion in U.S. investments in exchange for favourable U.S. tariffs on South Korean goods.

The reports did not specify whether Seoul would cover the full cost of the Texas project. Seoul is also exploring other potential U.S. projects, including a large-scale nuclear power plant or a liquefied natural gas project in Alaska, according to the reports.

South Korea’s Industry Ministry said the reports on the Texas gas project were not accurate and that discussions between Seoul and Washington are continuing, making it too early to confirm specific details.

The ministry said the government will make an announcement once negotiations with the U.S. are complete, taking into account steps such as parliamentary approval. In a separate statement, the ministry said no decision has been made yet on building a nuclear power plant in the United States.