Venture Global, a U.S. liquefied natural gas (LNG) exporter, is preparing for an initial public offering (IPO). This has been seen as a strategic move timed with the inauguration of President Donald Trump, who is friendly to fossil fuel-based energy policies. Industry experts generally expect that Venture Global's IPO will proceed smoothly.
The Wall Street Journal (WSJ) reported, citing anonymous sources, that Venture Global is likely to conduct its IPO this week. According to The Economist, Venture Global plans to raise up to $2.3 billion through the IPO, offering a total of 50 million shares at an indicative price range of $40 to $46 per share. This is the first major IPO in the U.S. energy sector in 12 years since 2013.
Venture Global is an LNG transportation company headquartered in Arlington, Virginia. If this IPO is successful, the corporate value will reach $110 billion (approximately 159.5 trillion won), surpassing the market capitalization of British Petroleum (BP), Europe's largest oil company. Venture Global made substantial profits by selling dozens of LNG ships to Europe, which is facing a gas shortage following the Ukraine war. The resulting revenue has been invested in building new terminals. Once the second terminal becomes operational, it will become the second-largest LNG exporter in the U.S. after Cheniere Energy.
Investors are paying attention to this year's first IPO in the U.S. stock market and the first mega IPO in the energy sector in a decade. In particular, President Trump's pro-oil and gas policies are enhancing Venture Global's growth potential. On the 20th, the day of his inauguration, President Trump signed an executive order lifting the freeze on LNG export permits. The Biden administration had imposed export restrictions as part of climate change and inflation measures, but the Trump administration will actively support foreign sales. The Economist noted, "The current political environment will work in favor of Venture Global's IPO," stating that "Trump's policies will provide a favorable policy environment for LNG exporters like Venture Global."
Venture Global's technological prowess is also highly regarded. The Economist reported, "Venture Global, which began 10 years ago while largely unknown, used factory-manufactured scalable modular equipment," noting that "this technology, which shocked the oil industry, replaced the high-cost custom technology of existing competitors and increased Venture Global's revenue to $4.9 billion." The modular approach involves transporting pre-fabricated structures to the site for assembly, differing from the 'stick-built' method where all structures are manufactured on-site. The Economist explained that Venture Global cut the construction time needed for an LNG plant by about half, reducing it to less than three years through the modular method.
The United States is increasingly playing a larger role in global LNG supply. The Financial Times (FT) reported that President Trump's executive order to foster the fossil fuel industry will further boost the U.S. LNG sector, predicting that U.S. LNG export volumes will double over the next five years.