Venture Global Poised to Benefit from Rising Global LNG Demand
The global energy market is increasingly favoring cleaner-burning fuels, which is strengthening the role of natural gas and liquefied natural gas (LNG). The U.S. Energy Information Administration (EIA) projects that U.S. LNG exports will grow from 15.1 billion cubic feet per day (Bcf/d) in 2025 to 17.4 Bcf/d in 2026 and 18.6 Bcf/d in 2027. This growth is driven by strong overseas demand for domestic LNG, particularly in major Asian markets and Europe, where gas inventories are low ahead of winter.
Venture Global (VG) is well-positioned to capitalize on this rising demand. The company expects to export 500 to 518 cargoes in 2026, with 91% of these volumes already contracted. Key projects include Plaquemines Phase I, which is set to reach commercial operation in the fourth quarter of this year, and CP2, scheduled for first LNG in the second half of 2027. As these projects come online, Venture Global is expected to benefit from stronger export volumes and increased participation in the global LNG market.
VG’s contracting strategy further supports its growth. The company’s mix of long-, medium-, and shorter-term contracts provides cash-flow visibility while retaining exposure to periods of stronger LNG pricing. Management believes this balanced portfolio will enhance returns and cash generation as global supply tightens and demand strengthens.
Other companies like Shell plc (SHEL) and TotalEnergies SE (TTE) are also well-positioned to benefit from strong global LNG demand. Shell has a diversified LNG portfolio with supply from over 10 countries and sales across more than 30 markets. The company expects global LNG demand to rise about 65% by 2050. TotalEnergies, meanwhile, expects LNG sales to exceed 44 million tons in 2026, with targets of 60 million tons by 2030.
From a valuation standpoint, Venture Global shares have declined 5.9% over the past year, while the industry has grown by 13.3%. VG trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 9.98X, which is above the broader industry average of 10.65X. The Zacks Consensus Estimate for VG's 2026 earnings has remained constant over the past seven days, and the company currently sports a Zacks Rank #1 (Strong Buy).