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    Baker Hughes Wins CP2 LNG Order From Venture Global (VG) Is Its Technology Partnership Deepening Further?

    Simply Wall St·07/28/2026 13:26:44
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    • Baker Hughes recently announced it secured a major order from Venture Global LNG to supply six liquefaction blocks, comprising twelve liquefaction modules, for the CP2 LNG expansion project in Louisiana, incorporating advanced centrifugal compressor technology and integrated control systems.
    • This large-scale equipment award marks a significant milestone for the CP2 development and reinforces Venture Global’s reliance on Baker Hughes as a core LNG technology partner.
    • Next, we’ll examine how this expanded Baker Hughes equipment order for CP2 could influence Venture Global’s long-term volume growth and contract outlook.

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    Venture Global Investment Narrative Recap

    To own Venture Global, you have to believe its modular LNG model can convert a growing contract book into durable cash flows while keeping project risk in check. The expanded Baker Hughes order supports CP2’s execution timeline, but it does not remove the key near term overhangs around remaining Calcasieu Pass arbitration outcomes and potential cost overruns at Plaquemines and CP2, which still look like the biggest swing factors for the story right now.

    Among recent updates, the 1.5 MTPA, 20 year Hanwha Aerospace sale and purchase agreement, which lifted Venture Global’s contracted portfolio above 46 MTPA, looks most relevant. Together with the CP2 equipment award, it underlines how much of the company’s growth is tied to successfully bringing CP2 and Plaquemines online, keeping both project execution and contracting terms central to any near term catalyst debate.

    Yet, against this constructive backdrop, investors still need to consider how unresolved arbitration and potential project cost inflation could...

    Read the full narrative on Venture Global (it's free!)

    Venture Global's narrative projects $22.4 billion revenue and $3.4 billion earnings by 2029. This requires 13.2% yearly revenue growth and about a $1.0 billion earnings increase from $2.4 billion today.

    Uncover how Venture Global's forecasts yield a $16.32 fair value, a 27% upside to its current price.

    Exploring Other Perspectives

    VG 1-Year Stock Price Chart
    VG 1-Year Stock Price Chart

    Some of the lowest analysts were assuming earnings might slip to about US$2.0 billion by 2029 even as CP2 advances, so you should weigh how this pessimistic path, centered on weaker margins and slower revenue growth, might shift if the Baker Hughes deal ultimately strengthens the export backlog and challenges those earlier assumptions.

    Explore 7 other fair value estimates on Venture Global - why the stock might be worth over 5x more than the current price!

    The Verdict Is Yours

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.