Mubadala Energy enters US gas market through Kimmeridge

Mubadala Energy, the Abu Dhabi-headquartered international energy company, has signed an agreement with Kimmeridge, the energy-focused alternative asset manager, to acquire a 24.1% interest in Kimmeridge’s SoTex HoldCo LLC, marking its entry into the US market

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 (MTPA) pre-FID LNG liquefaction and export facility in Louisiana.

Through SoTex, Kimmeridge is building America’s first integrated gas independent to deliver low-cost natural gas from wellhead to water and meet rising demand for responsibly-produced LNG across global markets.

Dr Bakheet Al Katheeri, chairman of the Mubadala Energy Board and chief executive officer, UAE Investments Platform, Mubadala Investment Company, commented, “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 finalised 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.”

The investment supports the company’s ambitious growth plans to invest across the gas value chain in key energy hubs around the world and represents a major addition to its existing global gas portfolio. Moreover, with the company’s goal of  supporting major gas projects in the transition to a lower carbon energy future, this investment is in line with the UAE’s 2050 net zero ambition.

Mansoor Mohamed Al Hamed, managing director and CEO, Mubadala Energy, said, “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.”

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 centre development.