South Korea Selects $22.3 Billion Encinal Texas Gas Plant as First Project Under $350 Billion US Investment Pledge

Multiple credible reports confirm that South Korea has selected a proposed $22.3 billion, 6.3-gigawatt gas-fired power plant in Encinal, Texas, as the first major investment under its $350 billion commitment to the United States, part of a 2025 trade deal aimed at securing lower US tariffs on Korean goods. The project, reported by Bloomberg, the Korea Herald, Korea JoongAng Daily, and the Korea Times, is designed to supply electricity to surging AI data centers and semiconductor facilities in Texas, where demand is projected to nearly double by 2032. It will be built in phases: an initial 1.4 GW of simple-cycle gas turbines followed by 4.9 GW of combined-cycle capacity, with first-phase operations targeted for 2029 and full capacity by 2032. Developers include Related Companies, NextEra Energy, and Lewis Energy Group. The broader pledge breaks down into $200 billion for strategic industries (capped at $20 billion annually) and $150 billion for shipbuilding cooperation, following a framework agreed in late 2025 to avert higher tariffs. Korean officials have highlighted projected revenues of $43-45 billion over 20 years as evidence of commercial viability, though opposition lawmakers have raised concerns over the lack of a confirmed power purchase agreement. The announcement follows meetings between President Trump and South Korean President Lee Jae Myung and comes amid similar Japanese investments in US gas infrastructure. The deal remains subject to final US approvals and parliamentary processes in Seoul.