Looking to bulk up US energy muscle and tighten ties with Seoul, President Donald Trump announced a package he cast as "a major step toward securing our critical energy supply chain, ensuring American energy dominance and making our partnership with South Korea and the entire Pacific region stronger than ever before." Energy industry executives joined the Wednesday event at the White House.
The up to $200 billion slate is the first wave to emerge from last year's US - South Korea trade deal, under which Seoul pledged $350 billion of investment in America. The cash is not automatic. South Korea negotiated conditions, including a formal commercial viability test, and several projects still face more review and approvals.
The timing is political too. With voters frustrated over living costs and Trump's handling of the economy, Republicans risk losing control of Congress in November's midterms. Lately, Trump has been highlighting investments in states with vulnerable GOP seats to help his party's chances.
Seoul detailed a proposal to direct as much as $120 billion to eight US reactors under the Project Power framework, allocating up to $100 billion for building costs plus $20 billion reserved for contingencies.
The tentative fleet would blend models, with six Westinghouse AP1000 reactors and two Korean APR1400 units. The parties expected to execute the framework are the two governments along with Westinghouse Electric Co., Korea Electric Power Corp., and Korea Hydro & Nuclear Power Co. It is not finalized yet. South Korean lawmakers must approve it, and some projects still require further scrutiny. They have also floated making a $10 billion upfront payment by year-end to lock in long-lead equipment.
Seoul and Washington likewise consented to explore Korean companies buying a stake in Westinghouse, with details to be determined through talks among the companies.
Commerce Secretary Howard Lutnick said an additional 6.5 gigawatt natural-gas power facility in Texas would represent about $22 billion of investment. Named Project Star and sited in Encinal, it is intended to supply power straight to nearby data centers, and initial output is targeted for 2029, according to the South Korean government. Related Co. Inc. and NextEra Energy Inc. are slated to lead the project, and Lewis Energy Group is providing the site and related infrastructure.
Alaska LNG is also in focus. Bloomberg earlier reported that South Korea planned $54 billion of support for the project. The longstanding effort would transport natural gas from the North Slope, dedicating a portion to local power needs and converting the remainder to LNG for delivery to customers in Asia.
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Glenfarne Group, a privately held developer, has signed preliminary deals with LNG importers but has yet to make a final go-ahead decision. Seoul said it is evaluating participation that could include constructing the pipeline as well as an LNG export facility. People familiar with the matter say Seoul's support could help unlock a final decision, but for now it is not committing to fully fund the project and any capital would require further due diligence and scrutiny.
For Alaska LNG, the latest step is meaningful. The idea has been around for decades and has wrestled with its sheer price tag and scope, including building a roughly 740 mile pipeline across the state. The project is attracting fresh attention from Asian customers seeking to diversify supply, as turmoil in the Middle East is constraining about one-fifth of worldwide LNG output and shipments.
Trump has repeatedly promoted US LNG exports, in contrast to President Joe Biden's decision to pause the permitting of such projects. The US already ranks as the world's biggest LNG exporter and is on track to double capacity over the next decade. Still, even with Alaska's shorter route to Asia, it would be entering what Ira Joseph, senior research associate at Columbia University's Center on Global Energy Policy, called "an already saturated field of new LNG projects."
Trump, pointing out that he carried Alaska by a large margin, said there shouldn't be any problem.
Since Alaska LNG is expected to take years before starting operations, the payoff would arrive long after voters cast their ballots.
The announcement came after months of difficult talks on the mechanics of the $350 billion investment program and the criteria for project eligibility. Weeks earlier, South Korean President Lee Jae Myung said negotiations restarted following his review of a near-final agreement, during which he identified provisions he could not accept. A key point for Seoul was explicitly requiring a test of commercial viability.
The two sides also set guardrails for the program. Returns will be shared 50:50 until South Korea recoups the principal plus the agreed interest across all projects. Afterward, the allocation shifts to 10 percent for Seoul and 90 percent for the US, with better-performing projects offsetting weaker ones before the switch takes effect. The agreement also imposes binding caps of $20 billion per year and $200 billion in aggregate.
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