Abu Dhabi: Mubadala Energy, the Abu Dhabi-based international energy company, has entered into a significant agreement with Kimmeridge, an energy-focused alternative asset manager, to acquire a 24.1% interest in Kimmeridge's SoTex HoldCo LLC (SoTex) through new equity issuance.
According to Emirates News Agency, SoTex encompasses two portfolio companies: Kimmeridge Texas Gas, which operates an upstream unconventional gas business in South Texas' Eagle Ford, and Commonwealth LNG, which owns a pre-FID LNG liquefaction and export facility in Louisiana. The facility, with a capacity of 9.3 million metric tons per year, is strategically positioned at the Calcasieu Pass's mouth.
Through SoTex, Kimmeridge aims to establish America's first integrated gas independent, delivering low-cost natural gas from wellhead to water to meet increasing demand for responsibly-produced LNG in global markets. Kimmeridge Texas Gas currently produces over 500 MMcfe/d, with a target to grow to 1.5 Bcfe/d by 2031. Meanwhile, Commonwealth LNG is finalizing key pre-FID work, with the first offtake from the plant expected in 2029.
Dr. Bakheet Al Katheeri, Chairman of the Mubadala Energy Board, expressed that this partnership marks Mubadala Energy's first major U.S. investment, positioning the company for accelerated growth across the gas value chain. This aligns with the UAE's 2050 net-zero ambition and Mubadala's goal to support major gas projects as part of the energy transition.
Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, highlighted that the transaction provides a platform for future growth and strengthens Mubadala's international portfolio. Ben Dell, Managing Partner of Kimmeridge, stated that Mubadala's investment accelerates Commonwealth LNG's path to Final Investment Decision, enhancing their energy innovation efforts.
With U.S. LNG supply projected to comprise 33% of the global market by 2050, this investment is strategically aimed at one of the world's key gas hubs. The region's world-class infrastructure and a highly liquid M and A market ensure attractive long-term prospects, supported by energy demand trends such as AI data center development. The transaction awaits customary regulatory filings and approvals before finalization.