Abu Dhabi sovereign investment firm Mubadala Energy has bought a 24.1% stake in Kimmeridge’s SoTex HoldCo, which owns Kimmeridge Texas Gas and Commonwealth LNG – marking its first major investment in the US.
Kimmeridge Texas Gas’ current net production is over 500 MMcfe/d which is expected to grow organically to 1.5 Bcfe/d by 2031, while Commonwealth LNG is finalising key pre-FID workstreams ahead of taking FID later this year with first offtake from the LNG plant – which is targeting 9.3 million metric tonnes per year – planned for 2029.
Source: Commonwealth LNG
Through SoTex, Kimmeridge is building the US’ first integrated gas independent to deliver low-cost natural gas from wellhead to water and meet burgeoning demand for LNG across global markets.
Dr Bakheet Al Katheeri, Chairman of the Mubadala Energy Board and CEO, UAE Investments Platform, Mubadala Investment Company, said the investment positions Mubadala Energy for accelerated growth across the gas value chain in one of the world’s most important and attractive energy hubs.
Ben Dell, Managing Partner of Kimmeridge, said Mubadala’s investment and support represent a significant milestone in the realisation of its wellhead-to-water strategy, and would accelerate Commonwealth LNG’s path to Final Investment Decision.
US LNG supply is expected to grow to approximately 33% of the global market by 2050, and its energy market is being spurred by cross-sector demand, particularly AI data centre development.
US Energy Secretary Chris Wright yesterday met with UAE energy, technology and investment leaders at ADNOC’s headquarters, his first official overseas trip since assuming office, to reinforce growing ties between both nations and explore new partnership opportunities.
He was briefed on XRG, ADNOC’s new international investment company, which is exploring investments across the energy value chain – from gas and infrastructure to chemicals and low-carbon solutions.
Meanwhile green hydrogen, renewable energy and critical raw materials are set to be key topics in EU-UAE free trade talks which are now underway.
European Commission President Ursula von der Leyen and UAE President Sheikh Mohamed bin Zayed Al Nahyan have agreed to launch negotiations following a phone call on Thursday (10 April).
“This marks a positive step forward in EU–UAE relations and, alongside the negotiation of broader Strategic Partnership Agreements, can serve as a catalyst for stronger ties between the EU and the Gulf Cooperation Council (GCC),” she said.
