Mubadala Investment Co. has made a significant entry into the U.S. natural gas sector, marking its first major step into the Lower 48’s upstream and LNG markets. The Abu Dhabi-based wealth fund’s energy division has acquired a 24% stake in SoTex HoldCo LLC, which operates a shale gas field and supports a liquefied natural gas (LNG) terminal in Louisiana. This move signals that Mubadala is not just testing the waters but is fully committed to the U.S. gas industry.
This investment comes shortly after the UAE’s announcement of a $1.4 trillion investment plan in the U.S., which spans various sectors including AI, semiconductors, energy, and manufacturing. Mubadala’s latest deal is part of this broader strategy.
SoTex, which is backed by Kimmeridge, operates the Texas Gas field, producing over 500 million cubic feet per day (mmcfd) and plans to triple that output by 2031. The company also controls Commonwealth LNG, which aims to launch a 9.3 million tons per annum (mtpa) export terminal later this year. With U.S. LNG demand soaring and Gulf Coast terminals rapidly expanding, Mubadala clearly wants to be a key player in this growing market.
In addition, ADNOC, Mubadala’s energy counterpart, is also active in the U.S. gas sector. ADNOC recently acquired a stake in NextDecade’s Rio Grande LNG and is exploring potential hydrogen projects with Exxon. There have even been discussions about ADNOC purchasing Mubadala’s entire energy portfolio, though talks have paused for Ramadan.
Mubadala, with $302 billion in assets under management, operates in 11 countries through its energy arm. The company’s focus is mainly in the Middle East, North Africa, Russia, and Southeast Asia, with a portfolio made up of nearly 69% gas, producing over 370,000 barrels of oil equivalent per day.
This strategic shift from regional dominance to global expansion highlights the growing influence of UAE state-backed energy companies. With Mubadala’s latest acquisition and ADNOC’s $80 billion XRG investment vehicle, the UAE is making its mark on global energy markets, particularly in U.S. gas.
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