Venture Global VG, a U.S.-based liquefied natural gas (LNG) exporter, announced the signing of power and grid frame agreements with GE Vernova Inc. GEV, a prominent player in the electric power industry, and Baker Hughes BKR, a leading energy technology company. As part of the agreement, VG plans to develop up to 16 power island units, each with a capacity of 720 megawatts (MW), along with associated power transformer systems across the company-owned and operated sites.
These projects are expected to support the continued growth of Venture Global’s existing behind-the-meter, Island-Mode power network, which generates electricity on-site instead of relying on the public electric grid. The proposed 720-MW power island units would utilize combined-cycle gas turbine units, similar to those used in VG’s existing power infrastructure.
VG Eyes Data Center Power Demand Alongside LNG Growth
The agreements also provide an attractive opportunity for the company to expand its core LNG business and enter the rapidly growing data center power demand market. The company highlighted that the deal could eventually add up to 10 gigawatts (GW) of new compute capacity for potential data center operators and adjacent infrastructure providers that require significant amounts of reliable electricity supply.
In addition, with Island mode, the company will be able to generate additional electricity without placing additional demand on the public electric grid or public water facilities. This would also avoid imposing incremental costs on local consumers. The expansion would leverage its existing 4.5 GW of modular, gas-fired Island-Mode power-generation capacity, which supplies electricity to the company’s LNG facilities.
VG Retains Flexibility in Power Capacity Deployment
Per the agreements with GE Vernova and Baker Hughes, VG may enter into definitive reservation agreements with two companies to secure manufacturing capacity at pre-specified pricing and delivery terms. This would allow the LNG company to retain flexibility in the timing and deployment of capacity. The company intends to scale up the capacity progressively, depending on customer demand and commercial agreements.
Venture Global currently expects to place its first purchase order for a power island by the end of 2026, while future purchase orders would be based on the company’s requirements. The company noted that it could develop up to 10 GW of computing capacity by the end of 2034, contingent on customer commitments and other related factors.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
