- Mubadala Energy acquires a 24.1% stake in Kimmeridge’s SoTex HoldCo, marking its entry into the US energy market.
- The deal provides access to Texas’ unconventional gas production and a major LNG export project in Louisiana.
Mubadala Energy, a division of one of Abu Dhabi’s sovereign wealth funds, signed a deal with energy investor Kimmeridge on Thursday, April 10. The agreement gives Mubadala Energy stakes in gas assets in the United States, marking its entry into the US market as part of its growth strategy.
The company will buy a 24.1% stake in Kimmeridge’s SoTex HoldCo. This deal allows Mubadala Energy to access Kimmeridge’s unconventional gas production in Texas and participate in Louisiana’s liquefied natural gas (LNG) export project.
The Louisiana LNG project plans to make a final investment decision later this year and start its first offtake in 2029. It will develop a liquefaction and export facility that will produce 9.3 million metric tons annually.
According to Wood Mackenzie data, Mubadala Energy expects US LNG to supply a third of the world’s LNG by 2050. The company believes this investment gives it a foothold in the US market, which will see strong demand, especially for artificial intelligence data centres.
Mubadala Energy did not disclose the financial details of the deal.
Mansoor Mohamed Al Hamed, the managing director and CEO of Mubadala Energy, said, “This transaction offers a significant platform for future growth in one of the world’s most important energy hubs.” He added, “The investment strengthens our position to expand across the gas value chain.”
Kimmeridge Texas Gas currently produces 500 million cubic feet equivalent per day. Mubadala Energy expects production to grow to 1.5 billion cubic feet daily by 2031.
Mubadala Energy operates in 11 countries, with a portfolio that is 70% gas and produces around 370,000 barrels of oil equivalent per day. This deal comes as US Energy Secretary Chris Wright begins his tour of Gulf Arab countries, including the UAE.