Abu Dhabi: Mubadala Energy, the international energy subsidiary of Mubadala Investment Company, has made a landmark entry into the U.S. energy market by acquiring a 24.1 percent equity interest in Kimmeridge’s SoTex HoldCo LLC (SoTex). The acquisition, executed through the issuance of new equity, represents a significant step forward in the company's global expansion strategy focused on natural gas and energy transition.
The deal establishes Mubadala Energy’s presence in one of the world’s most dynamic energy hubs, strengthening its ambition to build a diversified, lower-carbon global energy portfolio. SoTex’s assets include Kimmeridge Texas Gas, an upstream unconventional gas operation in South Texas’ prolific Eagle Ford Basin, and Commonwealth LNG, a 9.3 million metric tons per year (MTPA) pre-FID LNG export facility located at the Calcasieu Pass in Louisiana.
Pioneering a Wellhead-to-Water Model
Kimmeridge, through SoTex, is advancing what it describes as America’s first integrated gas independent, offering a cost-effective, full-cycle gas solution from wellhead to water. This model directly addresses rising global demand for responsibly produced liquefied natural gas (LNG).
The current net production of Kimmeridge Texas Gas stands at over 500 MMcfe/d, with a projected organic growth trajectory targeting 1.5 Bcfe/d by 2031. Meanwhile, Commonwealth LNG is finalizing key steps before reaching Final Investment Decision (FID) later in 2025, with initial LNG offtake planned by 2029.
Driving Energy Transition and Growth
This strategic investment aligns with Mubadala Energy’s commitment to energy transition goals and supports the UAE’s broader 2050 net zero ambitions. The move also underscores the company's focus on scaling its natural gas operations—widely regarded as a critical bridge fuel in the shift to cleaner energy sources.
“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,” said Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy. “We are excited about the long-term opportunities this partnership offers and how it positions us to grow our global gas portfolio while actively supporting the energy transition.”
Dr. Bakheet Al Katheeri, Chairman of the Mubadala Energy Board and CEO of UAE Investments Platform at Mubadala Investment Company, emphasized the strategic importance of the deal.
“Through this partnership and our entry into the U.S., we aim to further build on our role in establishing global energy champions. This transaction enables the development of key gas projects in the U.S. Gulf Coast and supports Mubadala Energy’s long-term international growth,” Dr. Al Katheeri noted.
A Milestone for Kimmeridge
Ben Dell, Managing Partner of Kimmeridge, praised Mubadala’s entry as a pivotal moment in executing their vision for integrated gas delivery.
“Mubadala’s investment marks a significant milestone in realizing our wellhead-to-water strategy. Their support accelerates Commonwealth LNG’s journey to FID and reflects a shared commitment to driving energy innovation,” Dell said.
A High-Potential Market
With U.S. LNG supply projected to account for nearly one-third of the global market by 2050, Mubadala’s investment secures a front-row seat in an increasingly critical segment of the energy sector. The region's advanced infrastructure, liquid M&A environment, and demand driven by sectors such as AI-powered data centers ensure a favorable long-term outlook.
The transaction is subject to standard regulatory approvals prior to final closing.
