UAE’s Mubadala Energy Enters U.S. Energy Market Through Equity Investment in Kimmeridge

UAE-headquartered Mubadala Energy, a wholly-owned subsidiary of Mubadala Investment Company owned by the government of Abu Dhabi, is making its mark in the U.S. energy market with an equity investment in the upstream gas and liquefied natural gas (LNG) business run by a subsidiary of Kimmeridge, an energy-focused alternative asset manager.

Mubadala Energy’s agreement to acquire a 24.1% interest in Kimmeridge’s SoTex HoldCo (SoTex) via the issuance of new equity provides access to two key companies: Kimmeridge Texas Gas, operating in the Eagle Ford in South Texas, and Commonwealth LNG, owning the 9.3 million metric tons per year (mtpa) liquefaction and export facility in Louisiana.

Dr. Bakheet Al Katheeri, Chairman of the Mubadala Energy’s Board and Chief Executive Officer, UAE Investments Platform, Mubadala Investment Company, expressed, “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.”

With SoTex facilitating Kimmeridge to create America’s first integrated gas independent to deliver low-cost natural gas from wellhead to water, Kimmeridge Texas Gas’ current net production exceeding 500 MMcfe/d is expected to grow to 1.5 Bcfe/d by 2031.

Ben Dell, Managing Partner of Kimmeridge, remarked, “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.”

Commonwealth LNG is advancing key pre-FID workstreams towards taking FID later this year, with the first offtake from the LNG plant planned for 2029. Mubadala sees this equity investment as “an important moment in its international expansion,” enhancing its growth plans to invest across the gas value chain in global energy hubs.

Perceiving this investment as aligning with the UAE’s 2050 net-zero ambition, Mubadala aims to play a proactive role in the energy transition by supporting gas projects as a bridge to a lower carbon energy future. The transaction is subject to customary regulatory filings and approvals before closing.

Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, highlighted, “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 projected to occupy about 33% of the global market by 2050, Mubadala views its investment as “a strategic play in one of the world’s most important gas hubs,” leveraging infrastructure and a robust M&A market for sustained growth, supported by energy demand trends like AI data center development.

This move comes shortly after Kimmeridge received approval for its proposed LNG export terminal near the Gulf of Mexico, making the Commonwealth LNG project the first major U.S. LNG project to secure an export authorization since the current administration’s freeze on LNG export permit approvals.