Mubadala Energy, the Abu Dhabi-based international energy company, has entered the U.S. market by signing an agreement to acquire a 24.1% interest in Kimmeridge’s SoTex HoldCo LLC. This marks a significant step in Mubadala’s ambitious expansion strategy in the energy sector.

SoTex holds two key portfolio companies: Kimmeridge Texas Gas, which operates in the Eagle Ford region of South Texas, and Commonwealth LNG, which is developing a liquefaction and export facility in Louisiana with an expected capacity of 9.3 million metric tons per year (MTPA). Kimmeridge’s business aims to provide low-cost natural gas and meet the increasing demand for responsibly-produced LNG in global markets.

Currently, Kimmeridge Texas Gas produces over 500 MMcfe/d, with projections to increase this to 1.5 Bcfe/d by 2031. Meanwhile, Commonwealth LNG is nearing completion of its pre-FID workstreams and is set to take Final Investment Decision (FID) later this year, with the first LNG plant offtake anticipated in 2029.

Dr. Bakheet Al Katheeri, Chairman of the Mubadala Energy Board and CEO of the UAE Investments Platform at Mubadala Investment Company, emphasized that this partnership solidifies Mubadala’s role in the global economy and enhances its position as a leader in energy projects. He expressed his delight in finalizing the investment, which aims to facilitate key gas projects along the U.S. Gulf Coast.

The transaction is a vital part of Mubadala Energy’s strategy to invest across the gas value chain in significant energy hubs globally. This initiative aligns with the UAE’s commitment to achieving net-zero emissions by 2050, reflecting a proactive approach to energy transition. Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, highlighted the significant growth potential this investment presents in one of the most critical energy markets in the world.

Ben Dell, Managing Partner of Kimmeridge, remarked that Mubadala’s support is crucial for advancing their strategy, which accelerates Commonwealth LNG’s path to FID. He expressed gratitude for the collaboration aimed at driving energy innovation and fostering a sustainable energy future.

With projections indicating that U.S. LNG supply could represent about 33% of the global market by 2050, this investment positions Mubadala Energy strategically within a key gas hub. The region’s robust infrastructure and active M&A market offer promising long-term prospects, particularly as energy demand evolves in areas like AI data center development.

The transaction remains subject to customary regulatory filings and approvals before completion.