Venture Global (VG.US) teams up with GE Vernova and Baker Hughes to build an “island power” network that will support the 10 GW target

The Zhitong Finance App learned that Venture Global (VG.US) became the focus of investors' attention on Thursday after the liquefied natural gas (LNG) exporter announced a new agreement with GE Vernova (GEV.US) and Baker Hughes (BKR.US) to expand its independent “island industrial power network” to meet the growing demand for AI data centers.

As of press time, Venture Global shares are down 4.3%, GE Vernova is down 4.2%, and Baker Hughes is slightly down 1.2%.

Venture Global says agreement supports 10 GW target

The agreements will develop up to 16 new generator sets, each with a capacity of 720 megawatts (MW). Venture Global said these agreements will ultimately support its goal of achieving 10 gigawatts (GW) of computing power by 2034.

Electricity will be generated using a “island model” using natural gas as fuel. Island mode means that the power plant is disconnected from the main grid and operates independently to supply electricity. In this case, data centers will be able to operate without relying on public grids.

Venture Global expects to place the first equipment orders by the end of 2026, and further expansion will depend on customer commitments. The new agreement will expand the company's existing 4.5 GW island model modular gas generation scale.

“By providing siloed generation, 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 construction,” said Mike Sabell, CEO of Venture Global.

Venture Global's existing partnerships

These agreements are based on long-term cooperation. Baker Hughes received an order for LNG equipment for the US LNG project from Venture Global last year, while GE Vernova provided electrical infrastructure for Venture Global's Plaquemines project in Louisiana.

Venture Global's LNG production capacity in production, construction or development exceeds 100 million tons/year (MTPA). Earlier this month, VG reached a 20-year agreement to supply 1 million tons/year to ConocoPhillips (COP) starting in 2030. Earlier in September, the company signed a 500,000 tons/year supply agreement with China Gas.

Venture Global's stock price has recovered from a low of $12.34 at the end of September, but has failed to break through the 50-day moving average (50-DMA). A decisive rise above $13.89 may indicate an improvement in momentum.

Also, according to The Fly, Bank of America raised Venture Global's target price from $16 to $18 and maintained a “buy” rating.

Despite a recent rebound, retail investor sentiment towards VG on StockTwits has remained in the “extremely bearish” zone over the past 24 hours.

One user said that only disclosing the data center customer name would make the deal more substantial.

Venture Global's stock price has surged nearly 90% this year.