Venture Global LNG Inc., a major U.S. liquefied natural gas producer, is reportedly preparing for an initial public offering (IPO) to raise over $3 billion. The company is collaborating with Goldman Sachs, JPMorgan Chase, and Bank of America for the listing, though details may still change according to insiders.
The IPO, if successful, would rank among the largest globally this year. Data shows that U.S. exchanges have raised about $40 billion through IPOs this year, marking a 60% increase compared to the same period in 2023, though still below the pre-pandemic decade's average.
Headquartered in Arlington, Virginia, Venture Global operates the Calcasieu Pass plant in Southwest Louisiana and is launching its second facility, Plaquemines LNG, south of New Orleans. The company also has two other projects, CP2 and Delta LNG, in Louisiana that are still in the permitting phase.
Once the second plant is fully operational, Venture Global is set to become the second-largest LNG producer in the U.S., following Cheniere Energy Inc. (LNG, Financial). The company was founded in 2013 by Mike Sabel and Bob Pender, who were initially considered outsiders in the Houston energy sector but have become significant players in the American LNG market.
Despite starting exports from Calcasieu Pass in 2022, Venture Global has yet to fulfill long-term contracts with major buyers such as Shell, BP, Repsol SA, Galp Energia SGPS SA, Orlen SA, and Sinopec (00386). The company attributes this to technical issues at the plant, which have delayed contract deliveries. However, they continue to load and sell LNG at higher prices on the spot market.
Arbitration with clients and Kiewit Corp., its engineering, procurement, and construction partner, is underway, involving appeals to U.S. and European legislators and regulators. Additionally, the company faces a lawsuit from former executives, including Jessica Wickett, over alleged prevention of stock option exercises.
