Mubadala Energy acquires Kimmeridge LNG and gas projects in the US
Mubadala Energy is an arm of Abu Dhabi’s sovereign wealth fund. It signed a deal with Kimmeridge, a US-based energy investor, on Thursday that gives it stakes in American gas assets. This marks its entry into the United States market, as part of the company’s growth plans.
Mubadala Energy announced that the deal to purchase 24.1% of Kimmeridge’s SoTex HoldCo would give Mubadala Energy direct access to Kimmeridge’s unconventional gas production and to a Louisiana liquefied gas export project. The latter is expected to reach a final decision this year, with a first offtake scheduled for 2029.
The Louisiana LNG Project is building a 9.3-million-metric ton per year liquefaction facility and export facility.
Mubadala Energy, citing Wood Mackenzie's data, said U.S. Liquefied Natural Gas (LNG) is expected to make up a third or more of the world supply by 2050. This investment allows it to gain a foothold on the market. It said that strong demand for artificial intelligence data centers would support this.
The financial details of the transaction were not revealed.
In a press release, Mansoor Mohammed Al Hamed, Mubadala Energy’s chief executive and managing director, said that this was the company's first major investment into the U.S. This transaction provides a platform for future growth within one of the most important energy hubs in the world.
The investment also highlights our position to accelerate our growth across the gas value-chain and build on our international strategic portfolio.
Mubadala Energy reported that Kimmeridge Texas Gas's net production is 500 million cubic foot equivalents per day. This will grow to 1.5 billion equivalents per day by the year 2031.
Mubadala Energy is present in 11 countries. These are mainly located in the Middle East, North Africa, Southeast Asia, and Russia. The portfolio of Mubadala Energy, which is primarily gas, produces 370,000 barrels equivalent to oil per day.
The deal was announced as U.S. Energy Sec. Chris Wright began a tour in the UAE of Gulf Arab nations. Yousef SABA reported. Mark Potter edited the article.
(source: Reuters)
