South Korea and the United States have reportedly settled on the approximate size of Seoul's proposed investment in a Texas gas power project at about $22.3 billion, according to reports citing unnamed officials and politicians. The investment would finance the construction of a 6.3-gigawatt gas-fired power plant in Encinal, Texas, a project described in reports as intended to address rising electricity needs linked to AI data centres.
Media accounts present the project as Seoul's first direct U.S. investment under the trade agreement signed by the two countries last year. Under that deal, South Korea committed to mobilise roughly $350 billion in U.S. investments in return for more favourable U.S. tariff treatment on imports of South Korean products.
The reports that mentioned the $22.3 billion figure did not indicate whether the South Korean government would bear the entire cost of the Texas development. They also said Seoul is weighing alternative or additional U.S. ventures, including the potential construction of a large-scale nuclear power plant or a liquefied natural gas facility in Alaska.
Responding to the media coverage, South Korea's Industry Ministry issued a statement saying that reports about the Texas gas project were inaccurate and that consultations between Seoul and Washington are continuing. The ministry said these ongoing talks make it difficult to confirm specific, verifiable details at this stage.
The ministry added that the South Korean government would issue a formal announcement only after completing negotiations with the United States and taking into account required procedures, such as parliamentary approval. In a separate release, the ministry explicitly stated that no decision has been made on building a nuclear power plant in the United States.
While the reported plan ties directly to the bilateral trade commitment and cites rising power demand from AI-related infrastructure as a rationale, the official South Korean position highlights that the matter remains under discussion and that key steps - both diplomatic and domestic - remain to be completed before any final determination is announced.