The USA LNG companies can’t wait for Trump to take office.
Recently, one of the largest liquefied natural gas (LNG) exporters in the USA $Venture Global, Inc. (VG.US)$ is seeking to go public with a valuation of 110 billion dollars.
According to documents submitted by Venture Global to the US Securities and Exchange Commission on Monday, the company plans to issue 50 million shares at a maximum price of 46 dollars per share, aiming to raise up to 2.3 billion dollars.
If the IPO process goes smoothly, this would become one of the largest listings in the NENGYUANHANGYE in over a decade.
Analysts point out that Venture Global’s IPO plan coincides with a critical period in the USA LNG industry—previously, Wall Street Insight reported that Trump plans to launch a comprehensive energy policy on his first day in office, including approval of new liquefied natural gas (LNG) project export licenses, accelerating oil drilling on the USA coast and federal lands, and repealing a series of climate legislation and Eco-friendly Concept regulations implemented by former President Biden.
Therefore, LNG developers are expected to be among the biggest beneficiaries during Trump's second term.
However, Europe may become the "victim" - in early January, the polar vortex swept across the USA, causing natural gas prices to soar, while Russia officially stopped transiting natural gas through Ukraine to Europe on New Year's Day. Naturally, Europe had to increase imports of expensive USA LNG.
According to the IPO documents, Venture Global has raised about 54 billion USD since its establishment 11 years ago for the construction of LNG facilities and to cover operational costs. In the future, Venture Global's long-term contracts are expected to generate 107 billion USD in revenue.
However, the rapid growth and sales strategy of Venture Global have also sparked controversy.$Shell (SHEL.US)$Several clients, including BP, have filed arbitration claims totaling 5 billion USD against Venture Global, accusing it of violating long-term commitments to profit from the spot market.
The IPO documents submitted by Venture Global on Monday also indicated that these claims could lead to "huge" payouts, certain long-term contracts may be terminated, and it could result in an increase in the company's debt levels.
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