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Venture Global, one of the biggest US liquefied natural gas exporters, is seeking to go public at a valuation of $110bn, as the industry readies for a potential boom in fuel shipments under the Donald Trump administration.
The company plans to sell 50mn shares for up to $46 each, raising up to $2.3bn, according to a US Securities and Exchange Commission filing on Monday, in what will be one of the largest energy listings in more than a decade.
Venture Global’s offering comes as LNG developers are poised to be one of the top beneficiaries in the second term of the Trump administration, which has vowed to lift Joe Biden’s pause on new LNG export approvals.
The offering marks the largest in the energy sector since Houston-based Plains GP Holdings’ offering in 2013, which raised just under $3bn. If successful, Venture Global’s capital raise would catapult its valuation to the top ranks of global energy producers; by comparison, BP’s market capitalisation is $85bn.
Russia’s invasion of Ukraine turbocharged the US LNG industry, triggering a surge in US shipments to Europe during its energy crisis to offset the loss of Russian molecules. In 2023, the US surpassed Australia to become the largest exporter of natural gas.
Venture Global plans to construct five LNG export terminals in Louisiana and currently operates two terminals in the US Gulf.
The company was founded in 2013 by ex-banker Mike Sabel and lawyer Robert Pender, who control 84 per cent of the company’s shares. The two men have pioneered modular construction of LNG facilities, which enables a lot of the prefabrication work on the giant facilities to be completed off-site to reduce costs and project delivery times.
The company’s rapid growth and decision to sell large amounts of LNG on spot markets, rather than long-term contracts, after western sanctions against Russian energy imports sparked a rapid rise in gas prices, have sparked controversy.
Shell, BP and several other customers have filed arbitration claims worth $5bn against Venture Global, arguing it had reneged on long-term commitments to them to profit off the spot market. The IPO documents warn these claims may result in “substantial” payments and certain long-term contracts being terminated and could lead to a rise in debt levels.
The IPO documents show Venture Global has raised about $54bn to build its terminals and pay operating expenses since it was founded 11 years ago. It has earned nearly $20bn in gross proceeds over that time, while long-term contracts are expected to generate revenues of $107bn in coming years.
The US Energy Information Administration expects US export capacity to grow by nearly 10bn cubic feet per day by 2028, nearly double existing capacity.
In December, the US Department of Energy warned in a study that the industry’s expansion risked increasing household utility bills and could displace more renewables than coal globally, with annual emissions reaching 1.5 gigatonnes by mid-century, about a quarter of current US emissions.
https://www.ft.com/content/a261fd59-8581-455c-9f8a-5e9d761751ef
