South Korea and the United States have unveiled the first initiatives under Seoul’s $200 billion investment commitment, part of a broader $350 billion package linked to last year’s bilateral trade deal, which reduced US tariffs on most Korean goods to 15 percent. The only confirmed project so far is Project Star, a $22.3 billion gas-fired power complex in Encinal, Texas, designed to supply electricity to nearby AI data centers. The 6,472 MW facility is expected to begin phased operations in 2029 and reach full operation in 2032. The project will be led by Related Companies and NextEra Energy, with Lewis Energy Group providing the site, gas, water and infrastructure. Seoul expects Korean firms to seek roles in equipment supply, engineering, construction and maintenance, giving them access to a US gas-power market where they have had limited involvement. The other two initiatives remain less certain, despite US President Donald Trump presenting them as firm commitments. South Korean Industry Minister Kim Jung-kwan clarified that both the proposed nuclear program and the Alaska LNG project will proceed only after commercial assessments and further negotiations. Project Power could allocate up to $120 billion to eight large nuclear reactors in the US, including two Korean-designed APR1400 units and six Westinghouse AP1000s. However, the expected framework agreement between the two governments, Westinghouse, KEPCO and KHNP would not automatically authorize construction. Sites, ownership structures and schedules remain undecided, and each project would require separate commercial review and Korean approval. If built, the APR1400 units would be the first Korean-designed commercial reactors in the US, opening opportunities for Korean builders and equipment suppliers. Project North concerns possible Korean participation in an Alaska LNG development linking North Slope gas fields to a liquefaction and export terminal in Nikiski through a 1,250-kilometer pipeline. Washington indicated the project could exceed $50 billion, but Seoul said no detailed investment amount has been agreed. Kim acknowledged that the project has weaker commercial viability, but said Korea should examine it strategically because its gas supply routes are vulnerable to risks in the Strait of Hormuz, Malacca, Taiwan and the Panama Canal, as well as uncertainty over Australian and Russian supplies. If Korea joins, the US has offered tariff reductions on materials such as steel, favorable conditions for Korean suppliers, long-term LNG purchase terms and priority access to LNG. The three initiatives could absorb most of the $200 billion commitment if they proceed. An umbrella special-purpose company would manage the portfolio, with separate subsidiaries for each project. Korea and the US would split returns equally until Seoul recovers its principal plus interest; after that, returns would be divided 10 percent to Korea and 90 percent to the US. Seoul’s annual and total investment caps would be legally binding, and Korea would retain reporting rights and consent over major changes. (ICE SEOUL)

Fonte notizia: THE KOREA HERALD