South Korea to consider $200 billion of U.S. energy investments, including Texas gas plant and nuclear reactors

Seoul is weighing a $200 billion investment plan in the United States that would span a natural-gas power facility in Texas, a series of large-scale nuclear reactors and, potentially, the Alaska liquefied natural gas (LNG) project. President Donald Trump announced on his social-media platform that the two countries had agreed to work on the Alaska LNG project, estimating its value at $50 billion, but South Korean President Lee Jae-myung said the project's inclusion depends on financial viability and compliance with legal requirements.

Lee posted on X that participation in the Alaska LNG venture and in each nuclear plant would be evaluated on a case-by-case commercial basis. A joint statement released earlier noted that work on the LNG project would proceed only if it is "commercially reasonable," without providing further allocation details.

The Texas component involves a $22.3 billion, 6,472-megawatt natural-gas plant in Encinal, intended to supply power to nearby data centers. Developed by Related Companies and NextEra Energy, the first phase is slated for commercial operation in 2029, with full capacity expected by 2032. The United States plans to involve Korean firms in equipment supply, engineering, construction and long-term operations for the project.

Separately, the agreement allocates $120 billion toward eight large nuclear reactors, with $100 billion earmarked for construction costs and $20 billion for contingency reserves. The nuclear deal, signed by the two governments and energy companies Westinghouse Electric, Korea Electric Power Corp. and Korea Hydro & Nuclear Power, also contemplates a minority investment by Korean firms in Westinghouse, subject to commercial negotiations.

Industry officials have described the Alaska LNG project as high-risk, noting the substantial upfront capital required and the need for sufficient cash flow to justify participation.