Source reporting: Dallas Express
South Korea’s government says negotiations remain underway after reports described a $22.3 billion investment in a major natural-gas power project near Encinal, according to the Dallas Express. The proposal is significant for Texas because it would link foreign investment, new electric generation and the rapid growth of artificial-intelligence data centers, but the reported terms are not a completed agreement.
The Dallas Express reported that Korean news outlets identified the proposed 6.3-gigawatt complex as a possible first project under South Korea’s broader investment commitment to the United States. South Korea’s Industry Ministry, however, said details could not yet be confirmed and that consultations and required procedures, including parliamentary review, were continuing.
As described in those reports, the project could begin with about 1.4 gigawatts of gas-turbine generation and later add roughly 4.9 gigawatts of combined-cycle capacity. Lewis Energy Group, a San Antonio-based company with longstanding operations around Encinal, was identified as the proposed owner. The company had not announced the project on its public website when the Dallas Express published its account.
Major questions remain unanswered. The reports did not establish how much financing South Korea might provide, what other companies would participate, which data centers would buy the electricity or when construction might begin. They also outlined two possible models: selling power through the Electric Reliability Council of Texas or supplying nearby data centers directly outside the grid. No final financing plan, power-purchase agreement or construction schedule was identified.
The proposed development is tied to a larger U.S.-South Korea trade and investment framework. Even if it advances, its effect on Texas households and the ERCOT system would depend heavily on whether it operates through the grid, serves private customers directly or requires publicly supported transmission and other infrastructure.
That distinction carries public-integrity importance. Texas officials are already examining how data-center growth affects generation, transmission, water use and consumer costs. A project of this scale could materially affect South Texas development and statewide energy planning, but policymakers and the public need confirmed commitments rather than preliminary figures. Until the governments and participating companies disclose final terms, the $22.3 billion amount should be treated as a reported proposal under negotiation.