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Venture Global's New EnBW LNG Deal Reflects Continued Demand, Positive Development, RBC Says

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Venture Global (VG) secured a new five-year LNG supply agreement with EnBW covering 0.82 million tons per annum, a development that RBC Capital Markets viewed positively in a Wednesday note.

RBC said the contract adds another layer of committed sales for Venture Global and highlights continued customer demand for dependable LNG supply despite a softer commodity price environment.

Although Venture Global did not disclose pricing terms, RBC estimated the agreement likely falls within a $4/MMbtu to $4.5/MMbtu range, reflecting its shorter duration compared with the company's longer-term contracts priced around $2/MMbtu.

The brokerage maintained a neutral near-term view on the stock, noting Venture Global shares may continue trading in line with Title Transfer Facility prices, which remain about 17% below levels seen before the recent US-Iran ceasefire announcement.

The agreement starts in 2026 and comes on top of an existing 2 million-tons-per-annum arrangement with EnBW. RBC said Venture Global could source volumes from Plaquemines LNG and commissioning cargoes from CP2, with first LNG from CP2 targeted for the second half of 2027.

Price: $11.07, Change: $+0.01, Percent Change: +0.14%

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