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Venture Global, one of the largest developers of liquefied natural gas in the United States, has filed for an initial public offering as it seeks to tap into investor enthusiasm for a potential export boom under President-elect Donald Trump.
The company, which plans to build and operate five LNG terminals on the U.S. Gulf Coast, filed IPO paperwork with the U.S. Securities and Exchange Commission on Friday. The size was not disclosed. expected from listing on the New York Stock Exchange.
The Financial Times previously reported that the company plans to raise between $3 billion and $4 billion, which would be the largest energy sector listing in more than a decade, and one of the largest in U.S. history.
Analysts at JPMorgan have estimated Venture Global's enterprise value at $100 billion, including a large amount of debt incurred to build its terminals.
Venture Global's IPO plans come as LNG developers are expected to be among the biggest beneficiaries of Trump's return to the White House. The president-elect has promised to reduce bureaucracy to increase oil and gas production and exports in pursuit of a policy of “American energy dominance.”
IPO documents show Venture Global has raised about $54 billion to build its terminals and pay operating expenses since its founding 11 years ago. It has earned nearly $20 billion in gross revenue during that time, while long-term contracts are expected to generate revenue of $107 billion in the coming years.
Venture Global was founded by former banker Mike Sabel and attorney Robert Pender, who control 84 percent of the company's shares. They were paid $33.5 million and $28.5 million respectively in 2023.
But the company has generated controversy. It is embroiled in a dispute with Shell, BP and several other key customers, who allege it defaulted on billions of dollars in long-term contracts when LNG prices soared following Russia's full-scale invasion of Ukraine.
These clients are filing arbitration claims worth at least $5 billion against the company, which the IPO filings warn could result in “substantial” payouts and the termination of certain long-term contracts and could cause an increase in debt levels.
The IPO documents also show that some former employees are suing Venture Global for damages worth $214 million in connection with alleged breaches of certain stock option agreements.
Venture Global, which plans to debut under the symbol “VG,” has grown rapidly over the past decade, riding a wave of global demand for American gas. Its first terminal, Calcasieu Pass, came online in March 2022 as gas prices soared amid the fallout from Moscow's invasion of Ukraine.
A second project, Plaquemines, began producing LNG this month. The company has plans to build additional facilities that would expand its total export capacity to 100 million tons a year, more than the entire LNG production of some countries.
But Joe Biden's administration has thwarted Venture Global's rapid growth plans. Its third project, CP2, is awaiting an export license from the Department of Energy, a process that has been delayed by a permit freeze enacted last January.
A department report released this week suggested the industry's continued unbridled expansion would drive up domestic fuel prices and undermine global climate goals.
Trump has promised to end the moratorium and increase American production, which with a capacity of 11.4 billion cubic feet per day is already the world's largest supplier. According to the U.S. Energy Information Administration, five projects under construction will bring this figure to 24.4 billion cubic feet per day by the end of 2028.
