Seoul sent $2.4 bil. to Washington for Texas energy project: finance minister
U.S. President Donald Trump waves as he arrives on Air Force One at Joint Base Andrews, Maryland, Monday (local time). AP-Yonhap
Korea has transferred $2.4 billion to Washington as part of its funding for a Texas energy project agreed upon by the two countries under Seoul's investment initiative, the finance minister confirmed Tuesday.
Responding to a lawmaker's question about whether the transfer had been made during a parliamentary audit, Finance Minister Lee Hyoung-il replied "yes," acknowledging around 10 percent of the project's estimated budget was sent to the United States on Thursday.
The gas-fired combined-cycle power plant project in Texas, dubbed "Project Star," calls for the construction of a 6,472-megawatt power plant for artificial intelligence (AI) data centers at a cost of $22.3 billion.
The Ministry of Trade, Industry and Resources recently announced three projects under Korea's investment pledge to the U.S., unveiled last year in return for lower tariffs. The pledge comprises $150 billion for shipbuilding cooperation and $200 billion for projects in various strategic sectors.
Lee said the Texas project met the requirement for commercial viability, responding to Rep. Lim Lee-ja of the main opposition People Power Party, who argued parliamentary approval would be necessary if the project were not commercially viable.
Touching on "Project North," which centers on reviewing the possible construction of a pipeline and a terminal for the liquefied natural gas (LNG) industry in Alaska, Lee said the project is currently under a review.
"A review of (Project North) is currently in progress, and we need to assess its commercial viability," Lee said.
The U.S. President Donald Trump administration announced Korea would invest $54 billion in the Alaska LNG project as part of a broader $200 billion investment in U.S. energy projects.
Korea's industry ministry, however, said the Alaska LNG project had not yet been finalized, stressing its commercial viability and other factors would need to be reviewed before any investment decision is made.
The LNG project involves the construction of a 1,298-kilometer pipeline from the North Slope, which has massive proven natural gas reserves, to southern Alaska, where the gas would be liquefied for shipment to Asia.
U.S. Vice President JD Vance later said Monday (U.S. time) that the U.S. and Korea still need to "work out" details of the Alaska project while expressing confidence that the project will ultimately move forward amid strong Asian demand for American gas.