Mubadala Energy makes first major US investment with stake in Kimmeridge’s SoTex

Mubadala Energy, the international energy arm of Abu Dhabi’s Mubadala Investment Company, has signed an agreement to acquire a 24.1 per cent interest in Kimmeridge’s SoTex HoldCo, marking the company’s first major investment in the US.

The stake will be acquired via the issuance of new equity, according to a joint statement issued on Thursday.

SoTex owns two portfolio companies: Kimmeridge Texas Gas, which operates an upstream unconventional gas business in South Texas’s Eagle Ford basin, and Commonwealth LNG, which is developing a 9.3 million metric tonnes per year (MTPA) pre-final investment decision (FID) liquefaction and export facility located at the mouth of the Calcasieu Pass in Louisiana.

The move is part of Kimmeridge’s strategy to build the first integrated gas independent in the US, delivering low-cost, responsibly-produced natural gas from wellhead to water to meet growing global demand.

Kimmeridge Texas Gas is currently producing over 500 million cubic feet equivalent per day (MMcfe/d), with plans to organically grow that to 1.5 billion cubic feet equivalent per day (Bcfe/d) by 2031.

Commonwealth LNG is finalising key pre-FID workstreams and aims to reach FID later this year, with first offtake scheduled for 2029.

We are delighted to announce our agreement with Kimmeridge, the energy-focused alternative asset manager, to acquire a 24.1% interest in SoTex HoldCo. @Mubadala pic.twitter.com/nbG6ncEGdE

— Mubadala Energy (@MubadalaEnergy) April 10, 2025

Move aligns with Mubadala Energy’s strategy to support the energy transition

“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,” said Dr Bakheet Al Katheeri, chairman of the Mubadala Energy Board and CEO of the UAE Investments Platform at Mubadala Investment Company.

The investment also aligns with the UAE’s 2050 net zero ambitions and Mubadala Energy’s strategy to support the energy transition by investing in major gas projects.

“As our first major investment in the US, this transaction offers a significant platform for future growth in one of the world’s most important energy hubs,” added Mansoor Mohamed Al Hamed, Managing Director and CEO of 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.”

Ben Dell, managing partner of Kimmeridge, called Mubadala’s investment a “significant milestone” in accelerating Commonwealth LNG’s path to FID. “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,” he said.

With US LNG expected to make up roughly 33 per cent of the global market by 2050, the move is seen as a strategic bet on one of the most dynamic regions in global gas.

The Gulf Coast region’s infrastructure and liquid M&A environment further bolster its long-term investment appeal, especially amid rising energy demand linked to sectors such as AI-driven data centres.

The transaction remains subject to customary regulatory filings and approvals before closing.