South Korea sends $2.4 billion to U.S. for Texas AI power project, finance minister says
Yonhap News reported that South Korea has transferred $2.4 billion to the U.S. for a Texas gas-fired power plant tied to AI data centers, while Alaska LNG plans remain under review.
The project, dubbed "Project Star," involves building a 6,472-megawatt gas-fired combined-cycle power plant to supply artificial intelligence data centers in Texas. Its estimated cost is US$22.3 billion.
Lee said the Texas project met the requirement for commercial viability. He was responding to Rep. Lim Lee-ja of the main opposition People Power Party, who argued that parliamentary approval would be necessary if the project were not commercially viable.
The Ministry of Trade, Industry and Resources recently announced three projects under South Korea's investment pledge to the United States. The pledge was unveiled last year in return for lower tariffs and comprises US$150 billion for shipbuilding cooperation and US$200 billion for projects in various strategic sectors.
Separately, Lee said "Project North," which centers on reviewing the possible construction of a pipeline and a terminal for the liquefied natural gas industry in Alaska, is currently under review. "A review of (Project North) is currently in progress, and we need to assess its commercial viability," Lee said.
The administration of U.S. President Donald Trump announced that South Korea would invest US$54 billion in the Alaska LNG project as part of a broader US$200 billion investment in U.S. energy projects. South Korea's industry ministry, however, said the Alaska LNG project had not yet been finalized, stressing that its commercial viability and other factors would need to be reviewed before any investment decision is made.
The LNG project involves the construction of a 1,298-kilometer pipeline from the North Slope, which has massive proven natural gas reserves, to southern Alaska, where the gas would be liquefied for shipment to Asia.
U.S. Vice President JD Vance later said Monday, U.S. time, that the United States and South Korea still need to "work out" details of the Alaska project. He expressed confidence that the project will ultimately move forward amid strong Asian demand for American gas.