South Korea will put up to $200 billion into American energy, President Trump announced, starting with a $22.3 billion natural gas power plant in Encinal, Texas, that Seoul has already picked as the program’s first project. The money flows from trade agreements Trump’s administration secured with South Korea, and the biggest pieces, eight nuclear reactors and the Alaska gas pipeline, are still under review.
Story Highlights
- Trump announced the plan at the White House on Wednesday, September 30, calling it “one of the largest energy infrastructure investments in American history.”
- South Korea has selected a $22.3 billion, 6.5-gigawatt gas power plant in Encinal, Texas, as the first project. A gigawatt is a billion watts of electric power.
- Last winter, the grid’s reliability watchdog put Texas among seven regions at elevated risk of blackouts in extreme cold.
- Eight large nuclear reactors are being considered but have not been finalized.
- About $54 billion could go to the Alaska LNG project, but it must first pass South Korea’s commercial-viability review.
What The Deal Includes: Reactors, Texas Power, Alaska LNG
Trump tied the investment to his trade work with Seoul. “Thanks to the agreements my administration has secured with the Republic of Korea, they will invest up to $200 billion,” he said, listing a power plant in Texas, “eight new large-scale nuclear power plants,” and, “at long last,” the Alaska natural gas pipeline. South Korea’s industry ministry confirmed the Texas plant as the first project selected under the program. The plant would send electricity straight to AI data centers, with first commercial operations planned for 2029, according to reports.
🚨 JUST IN: Trump said South Korea is putting up to $200 BILLION into American energy. Eight nuclear plants. A Texas gas complex. The Alaska LNG pipeline.
HOWEVER, Korea’s own news outlets spent Thursday walking it back.
THE DEAL Last year Seoul pledged $350 billion to get US… https://t.co/6bgjFVj1IF
— The Monarch Report (@monarchreport25) October 1, 2026
The Alaska piece centers on LNG, or liquefied natural gas, which is natural gas chilled into a liquid so it can be shipped overseas by tanker. The long-discussed project would carry gas by pipeline from Alaska’s North Slope to an export terminal on the coast. Alaska Gov. Mike Dunleavy and Rep. Nick Begich III joined Trump for the announcement.
Texas Was Already On The Blackout Watch List
Last winter, the North American Electric Reliability Corporation (NERC), the group that oversees the reliability of the power grid, warned that seven regions faced an elevated risk of blackouts in extreme winter weather, and Texas was one of them. NERC said peak demand had grown by 20.2 gigawatts in a year, more than twice the 9.4 gigawatts of new power added to the grid. In Texas, it pointed to “strong load growth from new data centers and other large industrial end users,” as POWER Magazine reported. With another winter ahead, the first project in this deal is a power plant in Texas.
Why It Matters For Energy Security And Cost
New reactors and gas plants add steady power that holds up the grid during peak demand and bad weather. Nuclear plants run around the clock, while gas plants can ramp up fast when demand jumps. Together they can help cut price spikes and blackouts. The Texas plant is aimed at the fast-growing data centers that are driving up power demand. Alaska LNG would expand American gas sales to allies and cut their reliance on unstable suppliers.
Conservatives have pushed for reliable baseload energy, meaning power plants that run steadily day and night, instead of mandates and wishful thinking. This plan leans on proven technology that keeps lights on and factories running. Supporters say more American energy means better jobs at home, stronger bargaining power abroad, and less leverage for adversaries that use fuel as a weapon. That fits a policy of peace through strength and energy dominance.
Alaska LNG: Big Opportunity, Normal Approvals Ahead
About $54 billion of the package could support the Alaska LNG project, including its pipeline and export terminal. South Korea has said every project drawn from its investment pool must pass a commercial-viability review, which checks whether a project will make money. South Korean lawmaker Kim Sung-won said it was “necessary to thoroughly verify the commercial rationale and viability of any investment that put a tremendous burden on the public.”
Large energy builds move in stages. Governments set direction, then companies lock in buyers, designs, financing and permits. For Alaska LNG, existing buyer agreements must become binding before financing can be secured, according to reports. The project has years of studies behind it, and under President Trump it has regained momentum as a way to use abundant American gas, supply allies, and add high-wage jobs in pipe work and port construction.
Nuclear Buildout: Scale, Jobs, And Cooperation
The eight reactors would be a large addition to America’s nuclear fleet as electricity demand climbs from data centers, factories and other power-hungry industries. South Korea’s industry ministry describes the plants as being considered, and sites and builders have not been announced. Building several units of the same design can cut costs through repeat work, shared crews and common parts. Nuclear projects also create long-term jobs for engineers, welders, electricians and operators.
Big nuclear programs have to manage schedules and licensing to keep costs in check, a lesson from past American builds. The United States and South Korea already have an agreement for civil nuclear cooperation, which covers peaceful nuclear work and technology sharing. That gives both countries’ industries a base to plan fuel supply, worker training and safety standards if the reactors move forward.
What Comes Next Under The Trump Administration
Here is where things stand. Announced and selected: the $22.3 billion Texas gas plant. Announced but not final: the eight reactors and the Alaska LNG money, both still in review. Companies and agencies will now work toward firm contracts, permits and designs. The Trump administration framed the package as a growth plan for reliable power, pairing nuclear with natural gas to keep costs down, strengthen the grid and expand exports.
Sources:
redstate.com, aljazeera.com, afp.com, cnbc.com, thehill.com, timesofindia.indiatimes.com
