South Korea selects $22.3 billion Texas gas plant as first US investment project

South Korea has selected a $22.3 billion gas-fired power plant in Texas as the first project under its $350 billion investment programme in the US, officials said.

The announcement comes as South Korean President Lee Jae Myung visits the US for the UN General Assembly and is expected to engage with US President Donald Trump, Caliber.Az reports, citing Turkish media.

Industry Minister Kim Jung-kwan presented the plan to the National Assembly’s trade and industry committee after the project cleared government reviews, according to Korea JoongAng Daily.

The project will involve the construction of a combined-cycle gas-fired power plant in Encinal, Texas, with a total generation capacity of about 6.3 gigawatts.

Seoul and Washington initially reached the $350 billion investment agreement on 30 July 2025 as part of a trade deal. Under the agreement, the US reduced proposed reciprocal tariffs on South Korean goods from 25% to 15% in exchange for Korean investment and other commitments.

The terms were finalised on October 29 and formalised through a memorandum of understanding in November.

Of the $350 billion package, $200 billion was allocated for strategic investments and $150 billion for shipbuilding cooperation, according to South Korea’s Yonhap News Agency.

The Texas project is intended to meet growing electricity demand as artificial intelligence data centres and advanced semiconductor plants expand in the state.

The South Korean government estimates the facility could generate between $43.29 billion and $45.4 billion in revenue over 20 years.

By Aghakazim Guliyev