South Korea Targets $22.3 Billion Texas Gas Project Under Trade Pact

On Monday, South Korea and the United States reached an understanding on Seoul’s planned investment in a Texas gas project at around $22.3 billion, reported Reuters citing South Korean media outlet Edaily.

The project would mark Seoul’s first U.S. investment under the trade agreement signed by the two countries last year.

The deal involves developing a 6.3-gigawatt gas-fired power plant in Encinal, Texas, to address growing electricity demand from AI data centers.

The media report also states that South Korea is also evaluating other U.S. opportunities, including a large-scale nuclear power plant and a liquefied natural gas project in Alaska.

However, the Industry Ministry said reports about the Texas gas project were inaccurate and that discussions between Seoul and Washington remain ongoing, making specific details difficult to confirm.

The ministry said the government would announce details after negotiations conclude and required procedures, including parliamentary approval, are completed. Separately, it said no decision has been made on constructing a nuclear power plant in the United States.

The investment is a part of the trade deal, under which South Korea committed invest in the U.S. in exchange for favorable U.S. tariffs on South Korean imports.

South Korea Will Provide $350 Billion Investment

Last year in September, South Korea said it is committed to providing $350 billion through loans, loan guarantees, and equity investments, rather than direct cash payments.

Last year in September, South Korea has pledged approximately $350 billion in U.S. investments to secure more favorable tariff terms under President Donald Trump, with some funds potentially directed toward a nuclear power project or Alaska LNG. President Trump later contradicted, saying, "South Korea’s $350 billion. That’s upfront."

Under a trade deal announced last July, the U.S. imposed a 15% tariff on South Korean imports, down from the previously threatened 25% rate. Seoul also committed to purchasing $100 billion of U.S. LNG and other energy commodities, which Trump called a boost for American workers and energy producers, as per S&P Global report.

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