Mubadala Energy, an Abu Dhabi headquartered international energy company, has made a significant investment in Kimmeridge’s SoTex HoldCo LLC, marking its entry into the U.S. market and further solidifying its ambitious expansion strategy. Through this partnership, Mubadala Energy will acquire a 24.1% interest in SoTex, which holds two portfolio companies: Kimmeridge Texas Gas and Commonwealth LNG.
Mubadala Energy’s Entry into the U.S. Market
Mubadala Energy’s entry into the U.S. market is a strategic move that bolsters the company’s ambitious growth plans to invest across the gas value chain in key energy hubs around the world. The company’s goal is to play a proactive role in the energy transition by supporting major gas projects as a bridge to a lower carbon energy future, in line with the UAE’s 2050 net zero ambition.
- With the acquisition, Mubadala Energy will gain access to a highly scalable upstream gas and LNG business, comprising currently producing upstream gas assets and a pre-FID LNG project.
- The company will also benefit from its partnership with Kimmeridge, a leading energy-focused alternative asset manager with a strong track record of delivering value in the energy sector.
Kimmeridge’s SoTex HoldCo LLC and its Portfolio Companies
SoTex HoldCo LLC 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 strategically located at the mouth of the Calcasieu Pass in Louisiana.
- Kimmeridge Texas Gas’ current net production is over 500 MMcfe/d, with expected growth to 1.5 Bcfe/d by 2031.
- 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.
Key Highlights of the Partnership
* Mubadala Energy will acquire a 24.1% interest in SoTex HoldCo LLC via the issuance of new equity. * The partnership marks Mubadala Energy’s entry into the U.S. market and bolsters the company’s ambitious expansion strategy. * The acquisition provides access to a highly scalable upstream gas and LNG business, comprising currently producing upstream gas assets and a pre-FID LNG project. * The partnership with Kimmeridge represents a significant milestone in the realization of SoTex’s wellhead-to-water strategy, accelerating Commonwealth LNG’s path to Final Investment Decision.
Mubadala Energy’s Commitment to the Energy Transition
Mubadala Energy’s commitment to play an active role in the energy transition is reflected in its expansion across the gas value chain and pursuit of opportunities in new energy sectors. The company’s goal is to support major gas projects as a bridge to a lower carbon energy future, in line with the UAE’s 2050 net zero ambition.
| Key Points | Highlights of the Partnership |
|---|---|
| Mubadala Energy’s entry into the U.S. market | * Acquisition of a 24.1% interest in SoTex HoldCo LLC via the issuance of new equity |
| Access to a highly scalable upstream gas and LNG business | * Comprising currently producing upstream gas assets and a pre-FID LNG project |
| Pursuit of opportunities in new energy sectors | * Expansion across the gas value chain and support for major gas projects as a bridge to a lower carbon energy future |
Quote from Dr. Bakheet Al Katheeri, Chairman of the Mubadala Energy Board and Chief Executive Officer, UAE Investments Platform, Mubadala Investment Company
* “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.”
Quote from Mansoor Mohamed Al Hamed, Managing Director and CEO, Mubadala Energy
* “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.”
Quote from Ben Dell, Managing Partner of Kimmeridge
* “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.
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