South Korea transfers $2.4 billion for Texas energy project
South Korea has transferred $2.4 billion to the United States as part of its funding for a major energy project in Texas, according to Finance Minister Lee Hyoung-il. The transfer, confirmed during a parliamentary audit on October 6, covers around 10 percent of the estimated $22.3 billion budget for the gas-fired combined-cycle power plant project, known as "Project Star." This initiative aims to build a 6,472-megawatt power plant to support artificial intelligence (AI) data centers.
The project is one of three under South Korea's investment pledge to the U.S., which includes a $150 billion commitment to shipbuilding cooperation and $200 billion for various strategic sectors. Minister Lee emphasized that "Project Star" meets commercial viability requirements, addressing concerns raised by Rep. Lim Lee-ja of the opposition People Power Party, who had argued that parliamentary approval would be necessary if the project lacked commercial viability.
Separately, Minister Lee mentioned that "Project North," focusing on a potential liquefied natural gas (LNG) pipeline and terminal in Alaska, is still under review. The South Korean industry ministry stressed that the Alaska LNG project had not been finalized and that commercial viability and other factors would need to be assessed before any investment decision is made. The project involves constructing a 1,298-kilometer pipeline from the North Slope to southern Alaska for gas liquefaction and shipment to Asia.
U.S. Vice President JD Vance expressed confidence in the Alaska project's progress, stating that the U.S. and South Korea still need to "work out" details but remain optimistic about its future amid strong Asian demand for American gas.