Mubadala Energy, the international energy division of Abu Dhabi’s Mubadala Investment Company, has announced its first major investment in the United States by acquiring a 24.1 percent stake in Kimmeridge’s SoTex HoldCo. This significant equity investment was confirmed through a joint statement released on Thursday and reflects Mubadala’s ambitious expansion strategy into the US market.

SoTex HoldCo manages two key portfolio companies: Kimmeridge Texas Gas, which operates an unconventional gas business in the Eagle Ford basin of South Texas, and Commonwealth LNG. The latter is in the process of developing a liquefaction and export facility with a capacity of 9.3 million metric tonnes per year (MTPA) located at the Calcasieu Pass in Louisiana. Kimmeridge Texas Gas is currently producing over 500 million cubic feet equivalent per day (MMcfe/d), with plans to increase production to 1.5 billion cubic feet equivalent per day (Bcfe/d) by 2031.

Dr. Bakheet Al Katheeri, chairman of the Mubadala Energy Board and CEO of the UAE Investments Platform at Mubadala Investment Company, stated that this transaction will position Mubadala Energy for accelerated growth within the gas value chain in a critical energy hub. He emphasized that this investment aligns with the UAE’s 2050 net zero ambitions and Mubadala Energy’s commitment to facilitating the energy transition through significant gas projects.

Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, expressed excitement about the future growth opportunities this partnership will bring. He noted that this investment represents a considerable platform for expanding their global gas portfolio. Ben Dell, managing partner of Kimmeridge, referred to Mubadala’s investment as a “significant milestone” that will help expedite Commonwealth LNG’s progress towards final investment decision (FID). He thanked the Mubadala Energy team for their partnership in driving energy innovation and promoting a sustainable energy future.

The strategic investment comes at a time when US liquefied natural gas (LNG) is projected to account for approximately 33 percent of the global market by 2050, making it a crucial player in the evolving gas sector. The Gulf Coast region’s robust infrastructure and the favorable mergers and acquisitions environment further enhance its appeal for long-term investments, particularly as demand for energy continues to rise in various sectors, including AI-driven data centers.

This transaction is still pending customary regulatory filings and approvals before it can be finalized.