Venture Global (VG.US) Teams Up with GE Vernova and Baker Hughes to Build "Island Power" Network, Will Support 10 GW Target

Venture Global (VG.US) became the focus of investor attention on Thursday after the liquefied natural gas (LNG) exporter announced new agreements with GE Vernova (GEV.US) and Baker Hughes (BKR.US) to expand its independent "island mode industrial power network" to meet the growing demand from AI data centers. As of press time, Venture Global shares fell 4.3%, GE Vernova dropped 4.2%, and Baker Hughes slipped 1.2%. Venture Global says agreements support 10 GW target These agreements will develop up to 16 new power generation units, each with a capacity of 720 megawatts (MW). Venture Global said the agreements will ultimately support its goal of achieving 10 gigawatts (GW) of computing capacity by 2034. The power will be fueled by natural gas and generated in "island mode." Island mode refers to power plants operating independently, disconnected from the main grid. In this case, data centers will be able to operate without relying on the public power grid. Venture Global expects to place the first equipment orders by the end of 2026, with further expansion depending on customer commitments. The new agreements will expand the company's existing 4.5 GW of island-mode modular gas power generation. "By providing island-mode power generation, natural gas supply, closed-loop water systems, thousands of acres of land, data centers and other necessary infrastructure, Venture Global is building a vertically integrated AI utility company that is expected to solve many of the bottlenecks associated with AI buildout," said Venture Global CEO Mike Sabel. Venture Global's existing partnerships These agreements build on long-standing partnerships. Baker Hughes received LNG equipment orders from Venture Global for U.S. LNG projects last year, while GE Vernova provided electrical infrastructure for Venture Global's Plaquemines project in Louisiana. Venture Global has more than 100 million tonnes per annum (MTPA) of LNG capacity in operation, under construction, or in development. Earlier this month, VG reached a 20-year agreement to supply 1 million tonnes per year to ConocoPhillips (COP) starting in 2030. Previously in September, the company signed a 500,000 tonnes per year supply agreement with CHINA GAS HOLD. Venture Global shares have recovered from a low of $12.34 in late September but have failed to break above the 50-day moving average (50-DMA). A decisive break above $13.89 could signal improving momentum. Separately, according to The Fly, Bank of America Corp raised its price target on Venture Global from $16 to $18 and maintained a "Buy" rating. Despite the recent rebound, retail sentiment on VG on Stocktwits remained in "extremely bearish" territory over the past 24 hours. One user said that naming data center customers would make the deal more substantive. Venture Global shares have surged nearly 90% year-to-date.