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South Korea selects a $22.3 billion power plant in Texas under US package
South Korea is planning a $22.3 billion natural gas power plant in Encinal, Texas, as the first project under its $350 billion investment package in the United States. The facility, with an estimated capacity of about 6.3 gigawatts, is expected to generate between $43.29 billion and $45.4 billion in revenue over 20 years.
The first project under South Korea’s $350 billion investment package with the United States is a $22.3 billion natural gas power plant planned for Encinal, Texas.
The facility, which will operate using combined-cycle technology, is expected to have a total electricity generation capacity of approximately 6.3 gigawatts. The power plant will help meet rising electricity demand in Texas driven by the expansion of artificial intelligence data centers and advanced semiconductor facilities.
Project submitted to National Assembly committee
South Korean Industry Minister Kim Jung-kwan submitted the project plan, which had passed government reviews, to the National Assembly’s Trade and Industry Committee.
The selection of the project coincided with South Korean President Lee Jae Myung’s visit to the United States for the United Nations General Assembly and his efforts to meet with U.S. President Donald Trump.
Investment package and tariff arrangement
Seoul and Washington reached an investment agreement on July 30, 2025. Under the agreement, the reciprocal tariffs that the United States was expected to impose on South Korean products were reduced from 25% to 15%; South Korean investments and other commitments were included in the package in return.
The terms of the agreement were finalized on October 29 and formalized in November through a memorandum of understanding. Of the package’s $350 billion, $200 billion was allocated to strategic investments and $150 billion to shipbuilding cooperation.
The South Korean government estimates that the power plant could generate between $43.29 billion and $45.4 billion in revenue over a 20-year period.
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