stockrowWhat it does
Venture Global produces and sells liquefied natural gas, or LNG, made from natural gas sourced in North America. Cooling natural gas turns it into a liquid that can be transported by tanker to overseas markets. The company sells LNG to third-party customers from its projects and through its sales and shipping business.
Its activities span LNG production, natural gas transportation, shipping and regasification, the process of converting LNG back into gas. Venture Global operates, constructs and develops export projects in Louisiana, with associated pipelines designed to bring gas to the facilities. It owns all or a majority interest in each LNG project.
Calcasieu is operating, while Plaquemines is under construction and commissioning. Commissioning involves testing equipment and bringing production units online; LNG produced during that process can be sold before a project reaches commercial operation. CP2 is under construction, and other projects and expansions are in development.
The company uses multiple factory-fabricated, mid-scale liquefaction trains at its facilities. The trains are shipped fully assembled for installation while work continues at the project sites. Venture Global is also building an LNG tanker fleet and has secured regasification capacity in the United Kingdom and Greece.
How it makes money
Venture Global sells LNG at several stages of a project’s life: during testing and commissioning, after commercial operation begins, and from production above contracted commitments. Its four reportable segments are the Calcasieu, Plaquemines and CP2 projects and the sales and shipping business. Each project segment includes its liquefaction facility, export terminal and associated gas pipelines; sales and shipping sells and delivers LNG and includes fleet operating costs.
Commissioning LNG is generally sold on forward, spot or short-term contracts. The proceeds depend on the length of commissioning, the volume produced and the market price when sales are agreed. Calcasieu began deliveries under its post-commercial-operation contracts in April 2025; Plaquemines continues to sell commissioning cargoes while construction and testing proceed.
Long-term sales and purchase agreements generally include a fixed liquefaction fee, a variable commodity fee tied to the Henry Hub gas price and, for certain delivered sales, a transportation charge. Under take-or-pay agreements, customers pay the fixed liquefaction fee even if cargo deliveries are suspended or canceled. A portion of the fixed fee is adjusted annually for inflation. As of December 31, 2025, approximately 96% of contracted volumes were under 20-year, fixed price sales and purchase agreements.
The company also markets LNG produced above its sales commitments under short-, medium- or long-term arrangements. Some delivered sales have a single price that includes transportation and is indexed to foreign gas markets. Sales of uncommitted excess LNG depend on the volume available and the market price when the sale is made.
Customers and how it sells
Venture Global sells LNG to third-party customers directly from its projects and through its sales and shipping business. Sales arrangements include long-term contracts beginning after a project reaches commercial operation, contracts with firm start dates, and shorter-term commissioning and excess-capacity sales. Some competitors are also customers under short-, intermediate- and long-term contracts.
In FY2025, Customer A accounted for 23.0% of revenue, Customer B for 14.0% of revenue and Customer C for 13.0% of revenue. As of December 31, 2025, Venture Global had executed 47.0 mtpa of sales and purchase agreements with third-party customers.
The company’s export projects are in Louisiana and use gas sourced from North American basins. Its LNG can be sold at the project or delivered through its shipping business. Venture Global has secured regasification capacity in the United Kingdom and Greece and expects it to support sales of LNG and regasified gas to European downstream customers. It has contracted to acquire nine LNG tankers, seven of which have been delivered, and has chartered two more to supplement delivery capacity until the full fleet is available.
Suppliers and costs
Purchasing, transporting and converting natural gas into LNG are the primary components of Venture Global’s cost of sales. The company uses long-term natural gas supply and transportation agreements with domestic producers. Its contracted pricing includes a variable commodity fee intended to cover feed gas and transportation costs, as well as certain operating expenses.
The company’s liquefaction trains are prefabricated in Italy and shipped fully assembled to project sites. At Plaquemines, Baker Hughes, UOP and CB&I provide and construct the liquefaction trains and power systems, pretreatment system, and storage tanks, respectively. Venture Global also manages substantial construction work itself.
Development, construction and commissioning costs rise as projects approach and enter construction, and the company expects them to remain significant until commissioning is complete. Venture Global outsources certain major equipment maintenance under long-term service arrangements, while its operating subsidiaries handle day-to-day operations and maintenance. It expects operating and maintenance expenses to increase as projects continue commissioning and enter operation. Inflation can affect equipment, personnel and operating costs, while only part of the fixed liquefaction fee in certain contracts adjusts for inflation.
- Revenue$13.8B
- Cost of revenue−$5.9B
- Research and development−$344.0M
- Selling, general and administrative−$433.0M
- Other operating costs−$1.9B
- Operating income$5.2B
Competitive position
Venture Global competes for natural gas supplies and LNG sales across global markets. Rivals include national energy companies such as QatarEnergy; multinational energy companies including BP, Chevron, ExxonMobil, Shell and Total; independent LNG producers Cheniere and Freeport LNG; and traders such as Glencore, Trafigura and Vitol. Some competitors have greater financial, engineering or marketing resources, and some are also Venture Global customers.
Commissioning cargoes and excess LNG sold on spot or short-term contracts face market-based price competition. The balance between LNG supply and demand affects both competition and prices. Development projects and expansions also compete with domestic and international suppliers on the price per contracted volume.
Our reading: Standardized factory-built trains and an owner-led construction approach may provide a cost and execution advantage, although project costs and completion remain uncertain. The company says the approach allows fabrication and site work to proceed in parallel.
Our reading: Long-term take-or-pay contracts provide a measure of commercial protection because customers pay a fixed liquefaction fee even when deliveries are suspended or canceled. That protection has limits: contracts can contain termination rights, and uncommitted LNG remains exposed to market prices.
Our reading: Shipping and regasification capacity broaden the company’s delivery options, but do not remove competition from other integrated suppliers.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| QatarEnergy | Global LNG supply and contracted sales | High |
| Cheniere | LNG production and sales | High |
| Freeport LNG | LNG production and sales | High |
| Shell | Natural gas supply and LNG sales | High |
| BP | Natural gas supply and LNG sales | High |
| Chevron | Natural gas supply and LNG sales | High |
| ExxonMobil | Natural gas supply and LNG sales | High |
| Total | Natural gas supply and LNG sales | High |
Growth opportunities
Venture Global’s development plans include completing Plaquemines and CP2, expanding existing sites and developing additional projects. Its modular design allows production units to begin commissioning while other parts of a facility remain under construction. The company also plans to use existing infrastructure for bolt-on expansions, although added capacity may require new gas supply, pipelines and transportation arrangements.
Plaquemines is targeting commercial operation in Q4 2026 for Phase 1 and Mid-2027 for Phase 2. The company commenced site work on CP2 Phase 1 in 2025 and obtained project financing for that phase. CP2 is targeting commercial operation in Late-2029 for Phase 1 and Mid-2030 for Phase 2; the timing of the Phase 2 investment decision remains subject to market and other conditions.
The company has proposed a Plaquemines expansion and plans a CP2 expansion. It expects to begin construction of the Plaquemines expansion upon receipt of required approvals and targets the second half of 2027, subject also to sufficient sales contracts to support financing. CP3 is in development, but none of its necessary approvals had been obtained at the time of the annual report.
Venture Global is also developing pipelines, including Blackfin with WhiteWater Midstream, and expanding its tanker fleet. It plans carbon capture and sequestration systems adjacent to its Louisiana projects, subject to regulatory approvals.
- $6.4BFY2022
- $7.9BFY2023
- $5.0BFY2024
- $13.8BFY2025
Structural risks
- Project execution and cost: Plaquemines has experienced delays involving its combined-cycle power system. Venture Global says costs to complete Plaquemines and CP2 have increased in the past and may increase further, potentially materially.
- Permits and regulation: LNG facilities and pipelines require approvals and remain subject to federal, state and local regulation. Failure to comply can lead to penalties or loss of authorizations; CP2’s FERC and non-FTA export authorizations are subject to ongoing appeals.
- LNG prices and demand: Commissioning and uncommitted excess sales are exposed to market prices and seasonal demand. Competition, additional LNG supply, alternative fuels and changes in international demand can affect the market.
- Contract obligations: Sales agreements can give customers termination or relief rights in circumstances including delayed commercial operation, failure to make scheduled cargoes available, extended force majeure or certain defaults.
- Supply and equipment: The business depends on future natural gas availability and prices. Construction and shipping can also face equipment shortages or delays, shipyard backlogs, engineering problems and transportation disruptions.
- Operating costs: Inflation can affect equipment, personnel and operating expenses. Only part of the fixed liquefaction fee in certain contracts adjusts for inflation, and the company anticipates that insurance premiums may increase.
Bottom line
Our reading
Our reading: Venture Global combines long-term LNG contracts with commissioning and excess-capacity sales that are more exposed to market prices. Its development model depends on repeating a standardized facility design while adding pipelines, ships and downstream capacity. Execution, financing and regulatory approvals matter to the expansion plans, while construction costs and contract conditions can affect the value realized from them.