Creation Covenant Alliance

Dynamic Banker-Lawyer Pair Amass Billions from Bold Natural Gas Investment

Ex-bankers Mike Sabel and Bob Pender built Venture Global LNG, now poised as a top US LNG supplier amid industry challenges.
Banker-Lawyer duo make billions from audacious natural gas bet

The US Gulf Coast is likely the only place where two men with minimal experience in the energy sector could revolutionize the industry and become billionaires.

Over a decade ago, ex-banker Mike Sabel and lawyer Bob Pender were driving across Texas, seeking funds to build a multibillion-dollar plant to liquefy and export US shale gas. Despite the dominance of supermajors and petrostates, they realized their vision and founded Venture Global LNG, now on track to become one of the largest US LNG suppliers. The US has surpassed Australia and Qatar as the top LNG exporter over the past eight years.

The question is whether Venture Global can maintain its growth amid political pressures and strained relationships with customers and rivals.

“We just grind through it,” Sabel said at the company’s $21 billion LNG plant in Louisiana, its second such facility. “We look up and often we’re very surprised by the progress.”

Venture Global’s strategy is based on the belief that countries transitioning from oil and coal will turn to LNG as a cleaner-burning alternative. Shell Plc forecasts LNG demand to grow by more than 50% through 2040.

Sabel and Pender revamped LNG facility designs, opting for modular setups with smaller units. Their first plant, Calcasieu Pass, went from final investment decision to fuel export in just 29 months, despite being $1 billion over budget. The second site, Plaquemines, is ahead of schedule and expected to produce LNG soon.

From these two plants, Venture Global is set to produce 30 million tons of LNG annually, about a third of the current US market. If their additional projects advance, they could challenge Cheniere Energy as the largest US LNG exporter.

“VG took a big risk by adopting this novel design,” said LNG consultant Amit Kshatriya. “It seems to have paid off.”

However, the company faces pushback. Environmentalist Bill McKibben urged the Biden administration to scrutinize LNG projects, calling Venture Global’s next project a “poster child for late-stage petrocapitalism.”

In January, the administration suspended new LNG export licenses. Despite the Federal Energy Regulatory Commission’s approval for CP2, the project still needs an export license from the Energy Department, likely delayed until after the 2024 election.

During this uncertainty, importers are exploring alternative suppliers, casting doubt on the US as a reliable partner.

Venture Global’s long-term customers, including BP Plc and Shell, have not received contracted shipments, leading to arbitration cases and demands for regulatory interventions.

“Deciding not to honor the very contracts that put them in business is not disruption. It’s deceit,” said Curtis Smith, Shell’s North America spokesperson.

Sabel remains undaunted despite facing multiple arbitration cases with major oil companies. Venture Global has not signed a new long-term contract in over a year, and global buyers are incorporating new terms to avoid similar disputes.

In 2023, Venture Global earned $7.8 billion from spot sales. Analysts estimate the company could be worth up to $100 billion, though Sabel and Pender declined to comment on its valuation.

Sabel has been active globally, meeting with leaders like German Chancellor Olaf Scholz and Japan’s Prime Minister Fumio Kishida. Despite challenges, he remains optimistic about their entrepreneurial journey.

—With assistance from Vernal Galpotthawela, Madlin Mekelburg, and Andrew Heathcote.

Original Story at finance.yahoo.com

Trending News

Mississippi River Faces Persistent Saltwater Intrusion, Region Seeks Long-Term Solutions



For the third consecutive year, the Mississippi River is experiencing significant saltwater intrusion, prompting local communities and environmental experts to search for sustainable solutions. This recurring issue arises as the river’s flow decreases, allowing saltwater to move upstream and threaten drinking water supplies. The U.S. Army Corps of Engineers is actively involved in addressing this problem, employing temporary measures like saltwater barriers to mitigate the impact on affected areas.



Saltwater infiltration poses serious risks to public health and agriculture, as freshwater sources become compromised. The situation is exacerbated by prolonged periods of drought, which have reduced freshwater flow in the Mississippi River. According to the National Weather Service, drought conditions have worsened due to climate change, increasing the frequency and severity of saltwater intrusion events.



Local authorities are collaborating with federal agencies to explore permanent solutions. Among the proposed strategies are enhanced levee systems and improved water management techniques. The U.S. Army Corps of Engineers is evaluating the feasibility of long-term infrastructure projects to prevent further saltwater encroachment. Additionally, community leaders are advocating for increased funding to support these initiatives and safeguard the region’s water resources.



The impact of saltwater intrusion extends beyond drinking water concerns, affecting local ecosystems and agricultural productivity. Farmers in the region have reported crop damage due to elevated salinity levels in irrigation water. The Natural Resources Conservation Service is working with farmers to implement adaptive practices, such as planting salt-tolerant crops and improving soil management techniques.



As the Mississippi River continues to face challenges from saltwater intrusion, stakeholders emphasize the importance of collaborative efforts and innovative solutions. The ongoing threat underscores the need for comprehensive planning and investment to protect one of America’s most vital waterways from the impacts of climate change and environmental stressors.

November 19, 2024



Environmental activists have raised concerns over the fossil fuel sector’s significant impact on COP29, the latest United Nations Climate Change Conference. Activists argue that the industry’s presence diverts focus from critical climate actions.



The conference, designed to promote global climate agreements, faces criticism for allowing fossil fuel companies to participate extensively. Environmental groups claim these companies undermine efforts to reduce carbon emissions and transition to renewable energy sources.



According to Climate Action Network, fossil fuel representatives have increased their lobbying activities, aiming to weaken climate policies. These industries allegedly influence negotiations, leading to watered-down commitments that fail to address the urgency of climate change effectively.



Experts suggest that the influence of these companies stems from financial contributions and longstanding relationships with decision-makers. Critics argue that this affects the conference’s ability to enforce meaningful climate change regulations.



During the event, several protests highlighted the need for transparency and a stronger focus on sustainable energy solutions. Activists are calling for increased participation of renewable energy stakeholders in future conferences.



The controversy surrounding fossil fuel involvement at COP29 underscores the ongoing challenge of balancing industrial interests with the global imperative to combat climate change.



November 19, 2024