Abu Dhabi-based Mubadala Energy has finalized an agreement with Kimmeridge, a prominent alternative asset manager focused on energy, to acquire a 24.1 percent interest in Kimmeridge’s SoTex HoldCo LLC (SoTex) through the issuance of new equity. SoTex encompasses two key portfolio companies: Kimmeridge Texas Gas, which operates an upstream unconventional gas business in the Eagle Ford region of South Texas, and Commonwealth LNG, which owns the 9.3 million metric tons per year (MTPA) pre-FID liquefaction and export facility strategically situated at the mouth of the Calcasieu Pass in Louisiana.
Through SoTex, Kimmeridge is pioneering America’s first integrated gas independent to deliver low-cost natural gas from wellhead to water, addressing the growing demand for responsibly-produced LNG across global markets.
Production and future growth
Kimmeridge Texas Gas currently boasts a net production exceeding 500 MMcfe/d, with projections indicating organic growth to 1.5 Bcfe/d by 2031. Meanwhile, Commonwealth LNG is finalizing critical pre-FID workstreams ahead of its expected Final Investment Decision later this year, with the first offtake from the LNG plant slated for 2029.
Accelerated growth across gas value chain
Dr. Bakheet Al Katheeri, chairman of the Mubadala Energy Board and Chief Executive Officer of the UAE Investments Platform at Mubadala Investment Company, remarked, “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.”
Significance of U.S. market entry
Marking Mubadala Energy’s entry into the U.S. market, this equity investment represents a pivotal moment in the company’s international expansion. It strengthens Mubadala Energy’s ambitious growth plans to invest across the gas value chain in crucial energy hubs worldwide, serving as a substantial addition to its existing global gas portfolio. Furthermore, with the company aiming to play a proactive role in the energy transition—supporting significant gas projects as a bridge to a lower carbon energy future—this investment aligns with the UAE’s 2050 net-zero ambition.
Long-term opportunities
Mansoor Mohamed Al Hamed, managing director and CEO of Mubadala Energy, commented on the investment, stating, “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.”
Collaborating for energy innovation
Ben Dell, managing partner of Kimmeridge, added, “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.”
With U.S. LNG supply projected to grow to approximately 33 percent of the global market by 2050, this investment is a strategic maneuver within one of the world’s most vital gas hubs. Additionally, the region’s world-class infrastructure and a highly liquid M&A market promise attractive long-term prospects, bolstered by energy demand trends in sectors such as AI data center development.
The transaction is contingent upon customary regulatory filings and approvals prior to closing.
