GE Vernova (NYSE: GEV) has been named as one of two suppliers on a major power agreement announced by Venture Global (VG), covering up to 16 gas-fired power islands of 720 megawatts each.
The deal is designed to serve Venture Global’s LNG sites and potential AI data centers, with deliveries scheduled to run through 2034.
Baker Hughes (NASDAQ: BKR) is the second supplier named in the frame agreement, which Venture Global signed on October 9 with both companies.
Only eight of the 16 units are reserved so far, meaning the headline $17.2 billion figure assumes every single order ultimately goes ahead.
According to Venture Global’s 8-K filing, the first power island order is expected by the end of 2026, with orders for the remaining reserved islands anticipated from early 2027.
Beyond reservation fees, neither party is legally obligated to buy or supply the units that fall outside the firm commitments already made.
The $17.2 billion total includes a separate GE Vernova Grid Solutions transformer deal, though the exact revenue split between GE Vernova and Baker Hughes has not been disclosed.
GE Vernova’s Power segment generated $21 billion over the last four quarters, with second-quarter revenue rising 14% to $5.48 billion, putting the deal’s scale into perspective.
Even if GE Vernova captured the entire $17.2 billion, spreading that figure across eight years to 2034 would amount to roughly $2.2 billion per year, approximately 10% of the Power segment’s current annual sales.
The reserved islands represent 5.76 gigawatts of combined-cycle capacity, compared against GE Vernova’s 116 gigawatts of gas backlog and slot reservations recorded in June, and its 125 gigawatt year-end target.
GE Vernova stock currently sits approximately 20% below its record high, and a frame agreement of this nature is unlikely to reprice shares on its own.
Third-quarter results are due before the market opens on October 28, though the backlog closes on September 30, nine days before Venture Global formally signed the agreement.
Investors will be watching closely to hear whether management counts the new reservations toward the 125 gigawatt backlog target during that earnings call.
Purchase orders for the eight reserved islands are not expected until early 2027, which is the point at which this deal transitions from reserved capacity into confirmed business.
