A steam injection nozzle system for injecting steam into a combustion liner of a gas turbine for enhancing power output and efficiency of the gas turbine. The combustion liner has a plurality of dilution holes for supplying air to a combustion chamber to create turbulence. A steam manifold surrounds the combustion liner and has a plurality of steam injection nozzles, each steam injection nozzle being disposed opposite a corresponding dilution hole, without touching the combustion liner, for injecting the steam directly into the combustion liner through the dilution holes. The steam is injected without altering an existing amount of air through the plurality of dilution holes, resulting in a constant amount of air through the plurality of dilution holes independent of the amount of steam injected therein within a predetermined range of steam. The predetermined range of steam injected may be between approximately 9% and approximately 35%, inclusive, of the air flowing through the combustion liner. Alternatively, the predetermined range of steam injected may be less than or equal to approximately 35% of the air flowing through the combustion liner.