The Texas Energy Commission confirmed Monday that the proposed 6.3‑gigawatt natural‑gas power complex near Encinal remains in the negotiation stage. South Korea’s Ministry of Trade, Industry and Energy told reporters that discussions with the United States are continuing and that no definitive terms have been signed.
Project overview and potential impact
According to Korean media, the plant would be the first under South Korea’s broader $350 billion investment commitment to the United States, a framework struck during the Korea Strategic Trade and Investment Deal signed by President Trump and South Korean President Lee Jae‑myung. The deal earmarks $150 billion for American shipbuilding and includes favorable tariff treatment for Korean firms.
The Encinal facility is projected to cost $22.3 billion, up from an earlier estimate of $19.8 billion. If built, it would generate roughly 1.4 gigawatts of gas‑turbine power in an initial phase, with a later expansion of another 4.9 gigawatts of combined‑cycle capacity, contingent on electricity demand and the project’s financial performance.
Who could be involved?
The Ministry identified Lewis Energy Group, a San Antonio‑based operator with more than 2,500 wells across Webb, La Salle and Dimmit counties, as the likely project owner. Lewis Energy has not yet issued a public statement, but its long‑standing presence in the area suggests it could play a central role.
Uncertainty remains about how much of the $22.3 billion would be financed by the South Korean government versus private investors, which companies might join the venture, and which AI data centers would purchase the electricity. Reuters noted that the initial reports did not confirm whether Seoul would fund the entire cost.
Power‑sale options
Two models are being discussed: selling electricity through the Electric Reliability Council of Texas (ERCOT) or delivering power directly to nearby AI data centers via an off‑grid arrangement. Neither a power‑purchase agreement nor a construction schedule has been finalized.
Local context and concerns
Texas is racing to expand generation capacity to meet the needs of data centers, manufacturers and a growing population. The Dallas Express has reported that the state could overtake Northern Virginia as the world’s largest data‑center market by 2030, with about 6.5 gigawatts of capacity already under construction.
Governor Greg Abbott has warned that data‑center operators must not shift infrastructure costs onto Texas households and small businesses. He is pursuing legislation that would require greater disclosure of electricity and water usage and ensure that new facilities contribute to the state’s power supply.
What’s next?
Both the South Korean ministry and the U.S. Trade Representative’s office say a formal announcement will follow once negotiations, parliamentary review in Seoul and any required U.S. approvals are completed. Until then, the $22.3 billion figure represents a proposal under discussion, not a binding agreement.
Local residents and businesses should watch for updates, especially regarding potential off‑grid power models that could affect ERCOT’s grid reliability and water consumption in the region.
Original reporting: The Dallas Express — read the source article.
