South Korea and the United States have agreed on the size of Seoul's planned investment in a Texas gas project, according to Korean media outlet Edaily. The deal centers on a 6.3-gigawatt gas plant in Encinal, Texas, built to meet rising power demand from AI data centers, though South Korea's Industry Ministry disputes parts of the reporting.
South Korea and the United States have agreed on the size of Seoul's investment in a Texas gas project at around $22.3 billion, Edaily reported on Monday, citing unidentified officials and politicians. The project would mark Seoul's first U.S. investment under last year's trade agreement.
A gas plant built for AI power demand
The project aims to build a 6.3-gigawatt gas plant in Encinal, Texas, according to the media reports, to meet rising power demand for AI data centers. The reports did not say whether Seoul would shoulder the whole cost of the project.
The investment would fall under the trade deal signed by the two allies last year, under which Seoul pledged $350 billion worth of U.S. investments in exchange for favorable U.S. tariffs on South Korean goods. Seoul is also considering other potential U.S. projects, including a large-scale nuclear power plant or a liquefied natural gas project in Alaska, the reports said.
Seoul's ministry pushes back
South Korea's Industry Ministry said the reports on the Texas gas project were inaccurate and that consultations between Seoul and Washington were continuing, making it difficult to confirm specific details. The government would make an announcement only after completing negotiations with the U.S. and accounting for procedures such as parliamentary approval, the ministry added.
In a separate statement, the ministry said no decision had been made on building a nuclear power plant in the United States.
Source: Investing.com
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