Venture Global (VG) Ends 2 Straight Gains. Here's Why

Venture Global, Inc. (NYSE:VG) is one of the stocks that bleed heavily.

Venture Global dropped its share prices by 6.15 percent on Monday to end at $16.78 apiece as investors appeared to have taken profits following two straight days of gains buoyed by its recent LNG purchase agreement with a European firm.

In a statement last week, Venture Global, Inc. (NYSE:VG) said it entered into an agreement with Securing Energy for Europe GmbH (SEFE), under which the latter’s subsidiary, SEFE Energy GmbH, will secure an additional 0.75 million tons per annum (MTPA) of LNG from Venture Global, Inc.’s (NYSE:VG) CP2 LNG for a contract period of 20 years.

The announcement amends the existing sales and purchase agreement signed by the companies in 2023, increasing the total volume of LNG purchased by SEFE from CP2 LNG to 3 MTPA.

Venture Global, Inc. (NYSE:VG) is expected to become Germany’s largest LNG supplier, with a combined 5 MTPA of 20-year offtake agreements signed with SEFE and EnBW.

In addition to its existing long-term agreements, it also supplied Germany with almost 80 cargoes of LNG from its Calcasieu Pass and Plaquemines LNG facilities, which are capable of powering 8 million German homes for one year.

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Disclosure: None. This article is originally published at Insider Monkey.