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According to a joint statement, Mubadala has signed an agreement with Kimmeridge to acquire a 24.1 percent interest in the latter’s SoTex HoldCo via the issuance of new equity.
SoTex holds two portfolio companies: Kimmeridge Texas Gas, which operates an upstream unconventional gas business in the Eagle Ford in South Texas, and Commonwealth LNG, which owns the 9.3 mtpa pre-FID LNG export facility located at the mouth of the Calcasieu Pass in Louisiana.
Through SoTex, Kimmeridge is building what it says is America’s first integrated gas independent to deliver “low-cost” natural gas from wellhead to water and meet burgeoning demand for LNG across global markets.
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 finalizing key pre-FID workstreams ahead of taking FID later this year with first offtake from the LNG plant planned for 2029, the statement said.
The two firms did not provide the price tag of the deal, which marks Mubadala’s entry into the US market.
The transaction remains subject to customary regulatory filings and approvals before closing.
Commonwealth LNG
In February, Commonwealth LNG said that it is targeting a final investment decision on its planned LNG export plant in Louisiana in September this year after it received a conditional non-FTA approval from the US DOE.
Also, the LNG terminal developer separately received its draft supplemental environmental impact statement (SEIS) from the Federal Energy Regulatory Commission (FERC).
In June 2024, Kimmeridge, via its affiliate KTG took a 90 percent stake in Commonwealth.
Before that, Commonwealth closed an investment of development capital from funds managed by Kimmeridge.
The two firms also agreed in principle on terms for a 20-year, 2 mtpa LNG offtake commitment from the facility along with the associated gas supply.
As per other deals, Switzerland-based energy trader Glencore entered into a long-term agreement with Commonwealth LNG in September last year.
Moreover, Commonwealth entered into a non-binding 20-year supply deal with Switzerland-based energy trader MET Group for 1 mtpa of LNG, and it also finalized a supply deal in 2022 with Australian LNG firm Woodside.
The deal is for the supply of up to 2.5 mtpa of LNG over 20 years to Woodside Energy Trading Singapore from Commonwealth’s LNG export facility.
Commonwealth is planning to build the six-train liquefaction and export facility on the west bank of the Calcasieu Ship Channel at the mouth of the Gulf of Mexico near Cameron.
The facility includes six 50,000-cbm LNG storage tanks, one jetty with the capacity to service vessels from 10,000 cbm to 216,000 cbm, and a pipeline.