Venture Global Signs $17.2 Billion Power Generation Equipment Framework Agreements

en.Wedoany.com Reported - On October 15, U.S. liquefied natural gas exporter Venture Global announced that it has signed framework agreements for power generation equipment and grid equipment with GE Vernova and Baker Hughes, planning to procure up to 16 independent gas-fired power generation systems, each with a capacity of 720 megawatts, for a total scale of up to 11.52 gigawatts. According to a filing with the U.S. Securities and Exchange Commission, if all procurement orders are executed, the total payment amount involved in the two types of agreements is expected to be approximately $17.2 billion. The additional equipment will be used for LNG facility expansion and potential artificial intelligence data center projects.

Under the power generation equipment framework agreement signed on October 9, GE Vernova is responsible for reserving the relevant equipment manufacturing capacity, while Baker Hughes will supply gas turbines, steam turbines, and supporting equipment and services, including integrated electrical equipment enclosures, control systems, and electrical integration technology. Each power generation system adopts a gas-steam combined cycle configuration, with planned delivery times spanning from 2028 to 2034. Venture Global expects to place the first power generation system procurement order by the end of 2026, and has signed an additional preliminary manufacturing capacity reservation agreement with GE Vernova for 8 more power generation systems, with the relevant procurement orders expected to be signed successively starting in early 2027.

In terms of power supporting equipment, Venture Global has separately signed a framework agreement with GE Vernova's GE Grid Solutions, covering power transformers and gas-insulated switchgear for up to 21 power generation systems. The two parties have completed manufacturing capacity reservations for the first batch of 5 equipment packages, and procurement orders are expected to begin by the end of 2026. The two types of framework agreements specify the equipment price structure, supply conditions, and delivery arrangements, and subsequent equipment procurement and delivery will be executed in accordance with specific reservation agreements and formal procurement orders.

Venture Global currently has 6 independent power generation systems at various stages of ordering, construction, or operation, with a total power generation capacity of approximately 4.5 gigawatts, primarily configured at its LNG facilities. These facilities adopt a user-side independent power supply model to provide power for liquefaction, compression, and supporting production facilities. The additional power generation systems will continue to use the existing gas combined cycle technology configuration and can be deployed in phases according to future project needs.

According to the company's announced long-term development plan, the additional power generation facilities can also be used for data center construction on land it owns or controls, with the goal of achieving up to 10 gigawatts of computing capacity by the end of 2034. The relevant development scale depends on customer commitments, market demand, and commercial arrangements. Venture Global plans to submit the first batch of permit applications during the week of October 15, and the potential third-party data center business will be implemented separately from the existing LNG production and sales business.