South Korea Announces $22.3 Billion Texas Gas Plant as First US Investment

South Korea reported to its National Assembly on September 22, 2026, that it will begin its first US investment project with the construction of a combined-cycle gas power plant in the Encinal area of Texas. This development marks the initial step in South Korea’s broader investment plans in the United States.

The Ministry of Trade, Industry and Energy stated that the Texas project is part of a strategic allocation from a larger US investment commitment. The government has outlined that this project is the first of several planned investments in the American energy sector.

The estimated cost for building the Texas gas power plant is approximately USD 22.3 billion. According to government reports, the project is expected to generate up to USD 45 billion over a 20-year period, which would allow for the recovery of principal and interest on the investment.

South Korea is also reviewing two additional US-based projects. These include the potential construction of eight nuclear reactors in the United States and a liquefied natural gas (LNG) development project in Alaska. Both projects are currently under consideration and have not yet reached the implementation stage.

What the numbers show

• The Texas gas power plant project is valued at about USD 22.3 billion.
• Government estimates indicate up to USD 45 billion in returns over 20 years.
• South Korea’s total US investment commitment stands at USD 350 billion, with USD 200 billion for strategic investments.

In connection with the proposed nuclear reactor project, the government is negotiating to acquire a 5% to 10% equity stake in the US nuclear company Westinghouse. This potential stake may include voting rights, according to statements from the government.

Regarding the Alaska LNG project, the government stated that commercial viability cannot yet be assessed, as the project remains in early stages and has not been finalized. No further details about the timeline or investment amount have been provided at this stage.

The government reaffirmed that the total amount to be invested in the United States will not exceed USD 200 billion, which is the cap set for the US investment fund. This limit is part of the broader commitment of USD 350 billion, with the remaining funds allocated to other purposes.

The Texas power plant project represents a key element of South Korea’s strategy to expand its economic presence in the United States. Additional projects, including those in nuclear and LNG sectors, are still under review and subject to further negotiation and assessment.

* This article is based on publicly available information at the time of writing.