Venture Global is about to kick off its liquefied natural gas (LNG) production at a major facility on the US Gulf Coast within days. This development comes as the company readies itself for one of the biggest energy listings in the United States.
Recently, the LNG developer received crucial regulatory approvals needed to activate its Plaquemines facility in Louisiana, according to sources familiar with the situation. This facility will become the eighth major LNG export terminal in the US and the second largest overall. The facility is set to begin operations just weeks before Donald Trump takes office, with plans to enhance America’s energy output based on its abundant fossil fuels.
Once fully operational, the Plaquemines facility will have an annual production capacity of 20 million tonnes, representing over 20% of the current US LNG output and nearly four times what Germany imported in 2023. A tanker named Venture Bayou has already reached the new terminal to prepare for loading LNG for export.
The Plaquemines facility marks a significant achievement for Venture Global, which has expanded rapidly over the past decade due to rising global demand for US gas. The company’s first export terminal, Calcasieu Pass, opened in March 2022, coinciding with soaring gas prices following Russia’s invasion of Ukraine.
Venture Global is also working on another project, CP2, which is currently awaiting an export license from the Department of Energy. This process has been delayed by a permit freeze imposed by the Biden administration, though Trump has promised to lift such restrictions.
The company has ambitious plans to construct more facilities, aiming to boost its total export capacity to 100 million tonnes per year, surpassing the total output of some countries.
As the Plaquemines facility opens, Venture Global is preparing to raise between $3 billion to $4 billion in what would be one of the year’s largest public offerings, with guidance from financial giants like JPMorgan, Goldman Sachs, and Bank of America. This fundraising effort could rank among the largest energy listings in the US, reminiscent of the $2.9 billion raised by pipeline operator Plains GP in 2013.
Analysts from JPMorgan have estimated that Venture Global’s enterprise value is around $100 billion, which includes significant debt incurred during the construction of its terminals. Over $20 billion has been raised to develop the Plaquemines facility, which is set to produce its first LNG batch approximately 30 months after the final investment decision was made—a notably quick timeline in an industry often plagued by delays.
Michael Alfaro, the Chief Investment Officer at Gallo Partners, remarked that the timing of the IPO is strategic, especially as energy security becomes a top priority under the new Trump administration. He praised Venture Global’s rapid growth and its competitive stance against industry leaders, highlighting the company’s operations in areas ripe for expansion.
Last year, the US emerged as the leading supplier of LNG globally, boasting a capacity of 11.4 billion cubic feet per day. The construction of five ongoing projects, including Plaquemines, is projected to elevate this capacity to 24.4 billion cubic feet by the end of 2028, according to the US Energy Information Administration.
However, Venture Global is not without challenges, facing multimillion-dollar arbitration claims due to disputes with major customers like BP and Shell. These European energy giants have accused the company of misconduct by withholding cargoes that were agreed upon in long-term contracts, opting instead to sell LNG at higher prices in the spot market. Venture Global disputes these claims, stating that full commercial operations at Calcasieu Pass have yet to start due to power supply issues, invoking “force majeure.”