U.S. asks South Korea to raise Texas power-plant investment to $25 billion

  • The United States proposed raising the Texas Ensinal plant investment cost to $25 billion.
  • $5.2 billion would be added to the original $19.8 billion project budget.
  • South Korea will reassess viability after receiving additional U.S. cost data.

The United States has proposed increasing the cost of the Texas Ensinal Gas Combined Cycle Power Plant from $19.8 billion to $25 billion, a roughly 25% rise that would add $5.2 billion, or about 7 trillion won. The plant is South Korea's first planned investment project under a broader U.S. commitment totaling $200 billion. Seoul has completed much of its feasibility review using the original budget but says the U.S. explanation, which cites water-supply issues, lacks concrete data on facilities, construction requirements and cost calculations. South Korea will conduct a further review of costs, profitability, interest rates and recovery prospects after receiving additional information, while Washington continues pressing for a swift investment announcement. The two sides are also negotiating profit allocation and an interest rate linked to the 20-year U.S. Treasury yield, approximately 5.2% annually, plus a spread. Domestic pressure has increased amid personnel changes in South Korea's investment-management bodies and competing U.S. interest in semiconductor projects.

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