UAE’s Mubadala enters US gas market with stake in SoTex

BATON ROUGE, April 10, 2025 – Mubadala Energy will acquire a 24.1% equity stake from Kimmeridge in US upstream and LNG player SoTex HoldCo, the Emirati company said on Thursday.

The acquisition marks Mubadala Energy’s first major investment in the United States and supports its strategy to expand across the gas value chain in key international markets. SoTex owns two assets: Kimmeridge Texas Gas, which operates unconventional gas assets in the Eagle Ford shale, and Commonwealth LNG, a 9.3-million-tonne-per-year pre-FID LNG export facility to be located at the mouth of the Calcasieu Pass in Louisiana.

The value of the deal was not specified.

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

“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.”

Kimmeridge Texas Gas currently produces more than 500 mcf equivalent per day and is targeting organic growth to 1.5 bcf equivalent per day by 2031. Commonwealth LNG is completing pre-FID workstreams, with final investment decision planned for later this year and first offtake projected for 2029.

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

“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.”

“Mubadala’s investment and unwavering support represent a significant milestone in the realisation of our wellhead-to-water strategy, accelerating Commonwealth LNG’s path to Final Investment Decision,” Kimmeridge managing partner Ben Dell said.

“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.”

US LNG supply is expected to account for around 33% of the global market by 2050, supported by robust infrastructure, a dynamic M&A environment and growing demand linked to AI data centre development.

Read our latest insights on: