Abu Dhabi's Mubadala Energy enters US upstream gas market with stake in Kimmeridge-backed company

The 24.1% stake will give Mubadala access to two vital producers in Texas and Louisiana

Mubadala Energy manages assets and operations across 11 countries, with gas comprising 69 per cent of its portfolio. Victor Besa / The National

Abu Dhabi's Mubadala Energy has entered the high-potential US upstream gas market by acquiring a stake in a company backed by alternative asset manager Kimmeridge, boosting its international portfolio and helping enable the development of key gas projects on America's Gulf Coast.

The energy unit of the UAE capital's sovereign wealth fund will be acquiring a 24.1 per cent interest in New York-based Kimmeridge’s SoTex HoldCo, giving it access to two portfolio companies in two US states, Mubadala Energy said in a statement on Thursday.

Those companies include Kimmeridge Texas Gas, which operates an upstream unconventional gas business in Texas, and Commonwealth LNG, which owns a liquefied natural gas facility in Louisiana that produces 9.3 million metric tonnes per year.

The transaction, which will be executed with the issuance of new equity, remains subject to regulatory filings and approvals before being finalised, Mubadala Energy said.

The partnership and entry into the US – the world's biggest economy and second-largest energy producer – will further drive "our leading role in building energy champions that deepen our position in the global economy", Bakheet Al Katheeri, chairman of Mubadala Energy's board, said in the statement.

"As the company’s first major investment in the US, 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," said Mr Al Katheeri, who is also chief executive of Mubadala Investment Company's UAE investments platform.

Mubadala Energy, previously known as Mubadala Petroleum, has been actively expanding its portfolio, and its latest partnership in the US signifies the focus it has on key energy markets.

The Kimmeridge deal "offers a significant platform for future growth in one of the world’s most important energy hubs", said Mansoor Al Hamed, managing director and chief executive of Mubadala Energy.

Mansoor Al Hamed, managing director and chief executive of Mubadala Energy (seated right), Bakheet Al Katheeri, chairman of the Mubadala Energy board and chief executive of Mubadala Investment Company's UAE investments platform (standing right), Neil McMahon, managing partner of Kimmeridge (standing left), and Ben Dell, managing partner of Kimmeridge. Photo: Mubadala Energy

Last year, Mubadala Energy won the rights to explore for oil and gas in the Central Andaman block, located in the Andaman Sea off Indonesia, in partnership with the London-based Harbour Energy.

Mubadala Energy's growing strategy in the gas market also builds upon its commitment to greener sources of energy, with several countries looking to substitute coal with natural gas, which is considered a cleaner fossil fuel compared to coal.

Global consumption of natural gas reached a high in 2024 as it returned to structural growth, with demand expected to increase further in 2025, primarily supported by fast-growing Asian markets, the International Energy Agency said in its latest gas market report.

Mubadala Energy, alongside fellow Abu Dhabi industry bellwether Adnoc, are also growing the UAE's international commitment to energy. In the Middle East alone, the majority of incremental LNG supply came from the Emirates, the Paris-based IEA said.

US LNG supply, meanwhile, is projected to grow to about a third of the global market by 2050, data from investment management firm Mackenzie shows.

The partnership is expected to help "drive energy innovation and accelerate the transition to a cleaner, more sustainable energy future", said Ben Dell, managing partner of Kimmeridge.

Mubadala Energy manages assets and operations across 11 countries, primarily focusing on the Middle East and North Africa, Russia and South-East Asia. Gas comprises 69 per cent of its portfolio, according to its website.

Mubadala Investment Company, which invests on behalf of the Abu Dhabi government, is at the centre of the emirate’s efforts to diversify its revenue base and generate income from sources other than oil. Aside from energy and oil and gas, its interests also include aerospace, semiconductors, metals and mining and petrochemicals.