Mubadala Energy’s Acquisition Grants Access to Kimmeridge LNG Operations

Under a recently signed agreement, Mubadala Energy will acquire a 24.1% interest in Kimmeridge’s SoTex HoldCo (SoTex), entering the U.S. upstream LNG market, fulfilling its international expansion plans, and aligning with the UAE’s 2050 net-zero initiative. SoTex holds Kimmeridge Texas Gas and Commonwealth LNG, allowing Mubadala Energy to play an active role in two major gas-based energy hubs.

"Through this partnership and our entry into the United States, we are to further our role in building energy that deepens our position in the global economy,” said Bakheet Al Katheeri, Chairman of the Mubadala Energy Board. “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 first major investment in the United States, this transaction positions Mubadala Energy for accelerated growth across the gas value chain.”

• Kimmeridge Texas Gas owns and operates an upstream gas business in South Texas’ Eagle Ford, where its current net gas production is over 500 MMcfe/d. This production is expected to increase to 1.5 Bcfe/d by 2031.
• Commonwealth LNG owns the 9.3 MTPA LNG liquefaction and export facility in Calcasieu Pass, LA, which is currently pre-final investment decision (FID). It will finalize pre-FID workflows prior to taking FID in late 2025, with first LNG offtake scheduled for 2029.

Representatives from Kimmeridge and Mubadala Energy; image credit: PR Newswire

"As our first major investment in the United States, 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, Mubadala Energy. “The investment also highlights our 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."

Kimmeridge is leveraging SoTex to develop an integrated gas system and deliver low-cost natural gas across the value chain, from wellhead to water. These assets will help meet the rising global demand for responsibly sources and produced LNG.

"Mubadala's investment and support represent a significant milestone in the realization of our wellhead-to-water strategy, accelerating Commonwealth LNG's path to FID,” said Ben Dell, Managing Partner of Kimmeridge. “We extend our gratitude to the Mubadala Energy team for their partnership and collaboration as we work together to drive energy innovation and accelerate the transition to a cleaner, more sustainable energy future."

Commonwealth LNG News

In late 2023, Commonwealth LNG signed a memorandum of understanding (MoU) with OnStream CO₂—a joint venture between Carbonvert and Castex Carbon Solutions—for the installation and operation of a carbon capture and storage solution at Commonwealth’s 9.3 MTPA LNG facility.

According to the MoU, OnStream CO₂ will design, construct, own, and operate CO₂ capture equipment in the vicinity of the Commonwealth LNG facility. Captured CO₂ will be permanently sequestered at the Cameron Parish CO₂ Hub. Commonwealth LNG has dedicated CO₂ emitted from its LNG facility for a 20-year term.