Korea to Invest 29 Trillion Won in Texas... Pushing for Construction of Gas-Fired Power Plant

The government is discussing with U.S. officials a plan to build a high-efficiency gas-fired combined cycle power plant worth approximately 29 trillion won ($19.8 billion) in Encinal, Texas, as the first project of the large-scale investment agreed upon with the U.S. last month. Minister of Trade, Industry and Energy Kim Jung-kwan visited Washington, D.C. from the 22nd to the 25th to discuss the matter with U.S. Secretary of Commerce Howard Lutnick.

This initiative is a follow-up measure to the $350 billion investment in the U.S. agreed upon during the Korea-U.S. summit last November, linked to the reduction of U.S. tariffs on Korean goods. Specific details of the project and the timing of the final announcement have not yet been confirmed.

The power plant is targeting operation in the early 2030s and will generate gas and electricity simultaneously. U.S. firm Lewis Energy Group has secured the land, water rights, and long-term natural gas supply for the proposed site in Encinal. The electricity generated by the plant is planned to be supplied to a nearby 5GW artificial intelligence (AI) data center currently being pursued.