TLDR
- South Korea plans to invest $200 billion in US energy projects as part of a wider $350 billion trade deal
- $54 billion is set aside for an Alaska natural gas pipeline and export terminal project led by Glenfarne Group
- $120 billion will fund eight nuclear reactors built across Ohio, Tennessee, South Carolina and Kentucky
- A $22.3 billion gas-fired power plant in Encinal, Texas will supply electricity to AI data centers starting in 2029
- Companies like ConocoPhillips, Westinghouse, Baker Hughes and Doosan stand to benefit from the deals
President Donald Trump announced a $200 billion energy deal with South Korea on Wednesday. The announcement took place in the Oval Office.
🚨 BREAKING: President Trump just announced a MASSIVE $200 BILLION South Korean investment package in American energy, live from the Oval Office
$54 BILLION of that is going toward the long-stalled Alaska natural gas pipeline.
It’ll also include 8 LARGE NUCLEAR PLANTS, and HUGE… pic.twitter.com/OA8wZLLKkp
— Nick Sortor (@nicksortor) September 30, 2026
The deal is part of a larger trade agreement between the US and South Korea. That earlier agreement included a pledge from Korea to spend $350 billion on US projects. In exchange, most Korean goods face a 15% tariff rate.
What The Alaska Project Involves
South Korea will provide $54 billion toward a natural gas project in Alaska. The project includes a treatment plant on Alaska’s North Slope.
Gas from the plant will travel through a new 800-mile pipeline. It will end near Anchorage, where most of the gas will be liquefied and shipped to Asia.
The plant is expected to produce about 20 million metric tons of liquefied natural gas each year. That would make it the third-largest LNG plant in the country if built today.
The project already has permits in place. It has also secured deals for some of its future output.
Trump described it as one of the largest energy projects in American history. Officials say it could be finished within five years if all pieces fall into place.
The project is led by Glenfarne Group, a privately held company that owns 75% of it. The state of Alaska owns the remaining 25%.
ConocoPhillips signed a 30-year supply deal with Glenfarne. The company will send its gas production through the new pipeline.
Baker Hughes will supply compressors for the project. The company has also made a financial investment in it.
A Reuters report added that the Alaska project will only move forward if certain commercial and legal conditions are met. Some financing details are still being reviewed by both governments.
Nuclear Reactors And A Texas Power Plant
South Korea will also finance nuclear reactors across four US states. The reactors will be built in Ohio, Tennessee, South Carolina and Kentucky.
Commerce Secretary Howard Lutnick said Korea will provide $100 billion for the reactors. An additional $20 billion will serve as a contingency fund.
Together, the reactors could power at least 8 million homes. They could also support several large data centers.
Some reactors are expected to use the AP1000 design. This design comes from Westinghouse Nuclear, a Pennsylvania-based company that recently filed plans to go public.
Westinghouse is owned by uranium miner Cameco and energy firm Brookfield Renewable Partners. Both companies could benefit from government financing tied to the new reactors.
Korean industrial company Doosan may also benefit. The company is a top supplier of pressure vessels and other major reactor parts.
A separate Reuters report said South Korea’s nuclear investment figure is listed at $120 billion, including two reactors based on Korea’s own APR-1400 design. Specific project details have not yet been finalized.
Lutnick said Korea will also fund a natural gas plant in Texas. That plant will be built in Encinal and will power artificial intelligence data centers.
The Encinal plant has a capacity of 6.47 gigawatt-hours. Commercial operations are expected to begin in 2029.
How The Money Will Be Managed
South Korea’s total investment will be capped at $20 billion per year. This cap is part of a legally binding agreement between the two countries.
Profits from the projects will be split evenly between South Korea and the US. This split continues until South Korea recovers its original investment across all three projects.
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