Abu Dhabi’s Mubadala Energy has entered a deal with Kimmeridge, the energy-focused alternative asset manager, to acquire a 24.1 percent interest in Kimmeridge’s SoTex HoldCo LLC (SoTex), via the issuance of new equity.
This marks Mubadala Energy’s entry into the U.S. market. The deal strengthens the company’s ambitious growth strategy to invest across the gas value chain in key energy hubs around the world and serves as a significant addition to its existing global gas portfolio.
SoTex’s two portfolio companies are: Kimmeridge Texas Gas, which runs an upstream unconventional gas business in the Eagle Ford in South Texas, and Commonwealth LNG, which owns the 9.3 million metric tons per year (MTPA) pre-FID LNG liquefaction and export facility strategically located at the mouth of the Calcasieu Pass in Louisiana.
Kimmeridge, via SoTex, is developing America’s first integrated gas independent to provide low-cost natural gas from wellhead to water, addressing the surging demand for responsibly-produced LNG across global markets.
The current net production of Kimmeridge Texas Gas is over 500 MMcfe/d, which is expected to increase organically to 1.5 Bcfe/d by 2031, while Commonwealth LNG is finalizing key pre-FID workstreams ahead of taking FID later this year with first offtake from the LNG plant planned for 2029.
This strategic investment highlights Mubadala Energy’s goal of playing a proactive role in the energy transition by supporting major gas projects as a bridge to a lower carbon energy future, aligning with the UAE’s 2050 net zero ambition.
Mansoor Mohamed Al Hamed Managing Director & CEO – Mubadala Energy
“As our first major investment in the U.S. this transaction offers a significant platform for future growth in one of the world’s most important energy hubs. The investment also highlights our strong position to accelerate our expansion across the gas value chain and build on our strategic international portfolio. We’re excited about the long-term opportunities this partnership offers, in line with our strategy to play a proactive role in the energy transition and grow our global gas portfolio.”
Dr. Bakheet Al Katheeri, Chairman of the Mubadala Energy Board and Chief Executive Officer, UAE Investments Platform, Mubadala Investment Company, commented that, “Through this partnership and our entry into the U.S., we are to further build on our leading role in building energy champions that deepen our position in the global economy. We are delighted that Mubadala Energy has finalized this equity investment with Kimmeridge to enable the development of key gas projects in the U.S. Gulf Coast. As the company’s first major investment in the U.S., this transaction positions Mubadala Energy for accelerated growth across the gas value chain in one of the world’s most important and attractive energy hubs.”
Ben Dell, Managing Partner of Kimmeridge, added that, “Mubadala’s investment and unwavering support represent a significant milestone in the realization of our wellhead-to-water strategy, accelerating Commonwealth LNG’s path to Final Investment Decision. We extend our sincere gratitude to the Mubadala Energy team for their invaluable partnership and collaboration as we work together to drive energy innovation and accelerate the transition to a cleaner, more sustainable energy future.”
As the U.S. LNG supply is projected to increase to approximately 33 percent of the global market by 2050, this investment represents a major strategic move in one of the world’s most important gas hubs.
In addition, world class infrastructure and a highly liquid M&A market ensure attractive long-term prospects in the region, supported by energy demand trends in areas such as AI data center development. The transaction is subject to customary regulatory filings and approvals before closing.
