US President Donald Trump has unveiled plans for $200 billion in energy investments in the United States by South Korea. The investments include a $54 billion Alaska LNG project, which has been mooted for some time, and a $22.3 billion natural gas-fired power project in Texas. According to Trump, the projects are part of a broader agreement between the two countries to increase economic cooperation.
The Alaska LNG project, led by Glenfarne Group, envisions an 800-mile pipeline carrying North Slope gas to a liquefaction facility near Anchorage for export to Asia. The project has faced environmental concerns in the past, but the Trump administration has largely brushed aside these concerns, canceling regulations to reduce emissions blamed for global warming. South Korea, however, has said that it will only consider investing in the project if it is commercially viable and subject to relevant domestic legal procedures.
The $22.3 billion natural gas-fired power project in Texas will provide 6,472 MW of energy to data centers located in Encinal. The facility is expected to come fully online by 2032. According to Seoul, both sides intend to proceed with the project, which is dedicated to supplying power to co-located data centers. The project is part of a broader $350 billion investment pledge by South Korea in the United States, agreed upon in a July 2025 trade deal.
Beyond the Alaska and Texas projects, Trump said the two countries are moving forward with a $120 billion nuclear power program to build eight large-scale reactors in the United States. The program includes $100 billion for construction costs and $20 billion in contingency reserves. However, South Korea has said that the nuclear power project will depend on the commercial viability of each individual reactor.
South Korean President Lee Jae Myung said that negotiations on the projects had been complex and difficult, with some terms proving difficult to accept. Lee added that Seoul would begin working on the projects on the condition that their commercial viability is confirmed and they comply with South Korea's legal procedures. The projects will be pursued in a manner that serves the national interest, according to Seoul's trade ministry.
The US energy sector is facing a potential labor shortfall, with an estimated 1.7 million skilled trade openings to be filled through 2035. According to a report by the Alliance for America's Skilled Trades, today's training programs produce just 55 workers for every 100 needed. This could pose a challenge to Trump's plans for a widespread energy project ramp-up.
The investments announced by Trump are part of a broader effort to increase economic cooperation between the United States and South Korea. The two countries have agreed to work together on various energy projects, with Seoul pledging to increase purchases of US energy under the July 2025 trade deal. The deal also set 15 percent tariffs on imports from South Korea.
Key points
- The investments include a $54 billion Alaska LNG project and a $22.3 billion natural gas-fired power project in Texas.
- South Korea has said that it will only consider investing in the Alaska LNG project if it is commercially viable and subject to relevant domestic legal procedures.
- The US energy sector is facing a potential labor shortfall, with an estimated 1.7 million skilled trade openings to be filled through 2035.
