VG Stock Rises Premarket On GE Vernova, Baker Hughes Power Deals – Traders Eye This Crucial Resistance Level

• Venture Global expects to place its first equipment order by the end of 2026.
• Venture Global said the agreements will eventually support its 10 gigawatts (GW) of computing capacity goal by 2034
• BofA raised the VG’s price target to $18 from $16 and kept a ‘Buy’ rating, according to The Fly.

Venture Global (VG) was on investors’ radar on Thursday after the liquefied natural gas (LNG) exporter announced new agreements with GE Vernova (GEV) and Baker Hughes (BKR) to expand its independent, ‘Island-Mode industrial power network’ amid increasing demand from AI data centers.

At the time of writing, VG shares were up 3.2% in pre-market trading. GEV shares were down 3.5%, while BKR edged 0.8% higher.

Venture Global Says Agreements Support 10 GW Goal

The agreements will develop up to 16 new power units, each with 720 megawatts (MW) of capacity. Venture Global said the agreements will eventually support its goal of 10 gigawatts (GW) of computing capacity by 2034.

The electricity would be generated in Island Mode using natural gas. Island Mode is when the plant disconnects from the main utility grid and continues running independently to supply power. In this case, data centers would be able to operate without relying on public power grids.

Venture Global expects to place its first equipment order by the end of 2026, with further expansion depending on customer commitments. The new agreements will expand the company’s 4.5 GW of Island Mode modular, gas-fired generation. 

“By providing Island-Mode power generation, gas supply, closed-loop water systems, thousands of acres of land, data centers, and other necessary infrastructure, Venture Global is creating a vertically integrated AI utility that could solve for the many chokepoints associated with the AI buildout,” said Mike Sabel, Venture Global CEO.

VG’s Existing Partnerships

The agreements build on longstanding partnerships. Baker Hughes secured LNG equipment orders from Venture Global for U.S.-based LNG projects last year, while GE Vernova supplied electrical infrastructure for Venture Global’s Plaquemines project in Louisiana.

Venture Global has more than 100 million tonnes per annum (MTPA) of LNG capacity in production, construction or development. Earlier this month, VG struck a 20-year deal to supply ConocoPhillips (COP) with 1 MTPA beginning in 2030. This followed a deal with China Gas in September for the supply of 0.5 MTPA.

Will VG Break This Resistance?

VG shares have recovered from their late-September lows at $12.34 but have failed to break above the 50-day moving average (50-DMA). A decisive move above $13.89 could signal improving momentum.

Separately, BofA raised the VG’s price target to $18 from $16 and kept a ‘Buy’ rating, according to The Fly.

Retail Wants A Customer Name

Despite the recent recovery, retail sentiment on Stocktwits surrounding VG trended in the ‘extremely bearish’ territory over the past 24 hours.

One user said the name of a data center customer would make the deal concrete.

VG shares have soared nearly 90% so far this year.

Also read: RDW, YSS Stocks Extend Losing Streaks: Piper Sandler Sees Competition, Growth Risks

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