The co-founders of a prominent American liquefied natural gas (LNG) company purchased a significant number of shares in their own firm just days before a key federal permit was granted, a move that has drawn attention from government ethics observers.
Robert Pender and Michael Sabel, the co-chairs and founders of Venture Global LNG, acquired nearly 1.2 million shares each over a one-week period in early March. The transactions, valued at approximately $12 million per person, were executed while the company’s stock price was at a relative low point.
The timing of these purchases has come under scrutiny. One week after the buying concluded, a top official in the current presidential administration approved a major export license for the company’s Cameron Parish 2 (CP2) terminal in Louisiana. The previous administration had paused that same project.
The CP2 license is a pivotal authorization, allowing the terminal to move forward. The facility is designed to export up to 28 million tonnes of LNG annually and is positioned to become a primary gas supplier to Germany.
Just days before the share acquisitions began, Venture Global hosted a high-profile event in Louisiana to announce an $18 billion expansion of another terminal. In attendance were senior cabinet officials, including the Secretary of Energy, who has regulatory authority over the company’s operations. At the event, these officials praised the company’s work and its alignment with the administration’s energy agenda.
A spokesperson for Venture Global stated that the share purchases by Pender and Sabel were in full compliance with all securities regulations and company policy. They emphasized that the timing was coincidental and unrelated to any government meeting or decision. The company asserts it engages with policymakers on a bipartisan basis and strictly adheres to all laws governing such interactions.
An administration spokesperson dismissed any implication of impropriety, calling such suggestions irresponsible.
Despite securing the crucial permit and announcing major international supply deals, Venture Global’s stock has struggled. Its current valuation represents a steep decline from its initial public offering price earlier this year. Industry analysts point to a potential global oversupply of LNG and note the company’s business model, which relies less on long-term contracts than some competitors, may leave it more vulnerable to market volatility.
Government ethics experts, however, maintain that the sequence of events warrants a closer look. They argue that the substantial investment by the founders immediately preceding a favorable regulatory outcome presents serious questions that should be formally examined.