South Korea in talks on $22.3 billion Texas gas plant, denies deal is final

South Korea and the United States are reportedly negotiating an approximately $22.3 billion investment in a 6.3-gigawatt gas-fired power complex in Encinal, Texas, intended to supply rising electricity demand from artificial intelligence data centers. The project would be the first major U.S. investment under a 2025 trade framework in which Seoul pledged $350 billion in U.S. investments in exchange for preferential tariff treatment. Reports say the project’s cost increased from earlier estimates after Washington sought additional funding for infrastructure, while South Korean companies could take leading roles in construction. South Korea’s Industry Ministry said the reports were inaccurate or premature, emphasizing that negotiations remain active, financing details are unsettled and parliamentary procedures are required before any announcement. Seoul has also been linked to possible U.S. nuclear and Alaska liquefied natural gas projects, but the ministry said no decision has been made on a nuclear plant.