tds_
Oct 17, 12:42 PM
$VG Venture Global: Data Center Entry Sends Shares Lower
At first glance, the pivot seems head-scratching and reads like a move into a buzzy new market, as LNG oversupply concerns will return to the forefront once the war in Iran ends. However, this is not a wrongheaded move. LNG facilities run on their own natural gas turbines. All of Venture’s facilities are in Louisiana, the state neighboring Texas, which recently paused new large-load data centers ahead of the US midterm elections. Venture is signaling to developers that it can offer stable power, firm interstate pipeline capacity, and land in an accommodating regulatory environment. A track record of executing on multibillion-dollar projects on or ahead of schedule helps too.
The bottom line: We are maintaining our
$14 fair value estimate for now. If we assume similar terms that Williams has achieved and one 720-megawatt power addition is made per year from 2027 through 2035, our fair value estimate would increase to
$17.
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