Mubadala Energy buys 24% stake in Kimmeridge, marking its first major U.S. LNG investment
Mubadala Energy, the Abu Dhabi headquartered international energy company, has today signed an agreement with Kimmeridge, the energy-focused alternative asset manager, to acquire a 24.1% interest in Kimmeridge's SoTex HoldCo LLC.
SoTex holds two portfolio companies: Kimmeridge Texas Gas, which operates 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 (MMtpa) pre-FID LNG liquefaction and export facility strategically located at the mouth of the Calcasieu Pass in Louisiana.
Kimmeridge Texas Gas' current net production is over 500 MMcfe/d which is expected to grow 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.
"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," said Dr. Bakheet Al Katheeri, Chairman of the Mubadala Energy Board and CEO, UAE Investments Platform, Mubadala Investment Company. "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."
"The investment highlights our strong position to accelerate our expansion across the gas value chain and build on our strategic international portfolio," added Mansoor Mohamed Al Hamed, Managing Director and CEO, Mubadala Energy. "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."
"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," said Ben Dell, Managing Partner of Kimmeridge. "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 expected to grow to approximately 33% of the global market by 2050*, this investment is a strategic play 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.
*Wood Mackenzie data
