Mubadala Energy, the international energy arm of Abu Dhabi’s Mubadala Investment Company, has entered the US energy sector by acquiring a 24.1% stake in SoTex HoldCo, a portfolio of Kimmeridge Energy Management. The transaction, executed through the issuance of new equity, marks Mubadala’s inaugural investment in the United States.
SoTex HoldCo encompasses two key assets: Kimmeridge Texas Gas , an upstream natural gas producer operating in South Texas’s Eagle Ford Shale, and Commonwealth LNG, a liquefied natural gas export terminal under development in Cameron, Louisiana. KTG manages approximately 162,000 net acres across five counties, producing around 400 million cubic feet equivalent of natural gas and oil per day. The company has access to markets in South Texas, Mexico, and the Gulf Coast.
Commonwealth LNG is advancing a 9.5 million metric tonnes per annum LNG export facility at the Calcasieu Ship Channel. The project aims to reach a final investment decision by the third quarter of 2025, with commercial operations projected to commence in 2028. The facility plans to feature five storage tanks and accommodate vessels up to 216,000 cubic meters in capacity.
Kimmeridge Energy Management, which holds a majority stake in SoTex, has been actively developing its integrated gas platform. In June 2024, Kimmeridge increased its ownership in Commonwealth LNG to over 90% and appointed David Lawler, former BP executive, as CEO of KTG. The company has also secured a $500 million senior unsecured notes offering to support its initiatives, including the Commonwealth LNG project.
In September 2024, KTG and Commonwealth LNG entered into a 20-year Heads of Terms agreement with Glencore Ltd., under which Glencore will purchase 2 million tonnes per annum of LNG from Commonwealth and an equivalent supply of natural gas from KTG. The definitive agreements are expected to be finalized by the fourth quarter of 2024.
