Texas gas power plant likely to be the first U.S. investment... follow-up negotiations on nuclear power also underway

It has been reported that the government has effectively finalized the construction of an LNG combinedcycle power plant in Encil, Texas, as its first investment project in the U.S., and has entered the stage of completing domestic administrative procedures. This project is intended to respond to rising power demand from the expansion of artificial intelligence (AI) data centers, and the total installed capacity is said to be about 6.3 GW. The government is reportedly reviewing a plan to build the initial facilities first and expand them in stages as demand grows. The project cost was initially discussed at around $20 billion, but it is said that the figure was adjusted during negotiations, with an agreement found at $22.3 billion, or about 30 trillion won. The method for settling revenues and costs, as well as the operating structure of the investment special purpose vehicle (ISPV), were also handled as final contentious issues. As a followup U.S. investment candidate, a plan to build up to eight large nuclear reactors is being considered. The government is continuing related discussions with the U.S. side, but since the plan has not yet been finalized, there is also the view that a joint announcement with the U.S. government is necessary.