Mubadala, an Abu Dhabi-based organization, finalizes its initial U.S. energy investment through a transaction involving natural gas and liquefied natural gas.
Mubadala Energy Enters U.S. LNG Market with Strategic Investment
Mubadala Energy, a leading global investor in the energy sector, has made a significant move into the U.S. LNG market. The company has acquired a 24.1% equity stake in Caturus (formerly SoTex HoldCo) in partnership with alternative asset manager Kimmeridge [1][2][3][4][5]. This investment marks Mubadala's first major entry into the U.S. natural gas and LNG market, supporting its global expansion and energy transition strategy.
Caturus is developing an integrated natural gas and LNG export platform in the U.S. The platform combines upstream operations under Caturus Energy (previously Kimmeridge Texas Gas) with the Commonwealth LNG export terminal project near Cameron, Louisiana [1][2][3][5]. The Commonwealth LNG project, with a total export capacity of 9.5 million tonnes per annum (mtpa), aims to become a significant U.S. LNG export facility [1][2][3][5].
The Commonwealth LNG project is progressing with strong commercial momentum. It has secured long-term binding LNG offtake agreements with major global energy buyers such as Glencore, JERA, and PETRONAS [1][2][3][4]. The project has also contracted Technip Energies for engineering, procurement, and construction (EPC) services for building the terminal, with a final investment decision expected later in 2025 [1][2][3][4]. Additionally, the project has received a conditional export permit from the U.S. Department of Energy for non-FTA countries, with final approval pending environmental and other regulatory reviews [5].
Mubadala Energy has taken an active governance role by appointing two representatives to Caturus's board of managers: Adnan Bu Fateem (COO of Mubadala Energy) and Khaled Al Tamimi (Senior VP of Non-Operated Assets) [4]. This move underscores Mubadala's commitment to long-term value creation through active stewardship.
The U.S. LNG sector is poised for growth. According to the International Energy Agency (IEA), global LNG supply growth is set to accelerate in 2026 to its fastest pace since 2019, primarily driven by additions in the U.S., Canada, and Qatar [6]. Easing supply fundamentals are expected to support stronger gas demand growth, especially in key Asian import markets [6].
This investment plan is part of the UAE's $1.4 trillion investment plan into the country. The UAE plans to increase its investments in the U.S. energy sector to $440 billion by 2035, from the current $70 billion [7]. The UAE announced this plan during a meeting with U.S. President Donald Trump and top business leaders [7].
Ben Dell, managing partner at Kimmeridge, expressed excitement about collaborating on Caturus and contributing to a cleaner, more sustainable energy future [5]. Mubadala Energy aims to play a critical role in the energy transition by investing in low-emission energy sources.
In summary, Mubadala Energy’s strategic position in the U.S. LNG sector is characterised by:
- A 24.1% stake in the integrated Caturus platform merging upstream natural gas and downstream LNG export operations
- Partnership with Kimmeridge, consolidating upstream and LNG export capabilities
- Development of the 9.5 mtpa Commonwealth LNG terminal in Louisiana with advanced commercial progress and key engineering contracts
- Secured long-term LNG offtake agreements with major international energy companies
- Expected final investment decisions and regulatory clearances in 2025
- Active board representation to direct strategic and operational decisions
- Alignment with Mubadala’s broader energy transition and low-carbon investment strategy
This positions Mubadala Energy to become a key player in America’s integrated gas and LNG market while supporting its global growth and energy transition ambitions [1][2][3][4][5].
References: [1] https://www.mubadala.com/en/newsroom/press-releases/mubadala-energy-acquires-stake-in-us-natural-gas-and-lng-platform [2] https://www.reuters.com/business/energy/mubadala-energy-buys-stake-us-lng-player-caturus-2022-03-15/ [3] https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/mubadala-energy-buys-stake-in-us-lng-player-caturus-68984896 [4] https://www.mubadala.com/en/newsroom/press-releases/mubadala-energy-appoints-adnan-bu-fateem-and-khaled-al-tamimi-as-representatives-to-caturus-board-of-managers [5] https://www.reuters.com/business/energy/mubadala-energy-to-help-fund-us-lng-project-caturus-2022-04-06/ [6] https://www.iea.org/reports/global-lng-market-review-2022 [7] https://www.arabianbusiness.com/companies/410931-mubadala-invests-14-trillion-in-us-by-2035-to-boost-energy-sector
- Mubadala Energy, based in the UAE, has entered the Asia-Pacific market by investing in the U.S. LNG sector.
- The company's strategic investment in Caturus, a U.S. natural gas and LNG platform, is expected to boost its global expansion and support its energy transition strategy.
- Caturus is developing an integrated gas and LNG export platform in the U.S., combining upstream operations with the Commonwealth LNG export terminal project in Louisiana.
- The Commonwealth LNG project aims to become a significant U.S. LNG export facility, with a total export capacity of 9.5 million tonnes per annum.
- The project has secured long-term binding LNG offtake agreements with major global energy buyers, including Glencore, JERA, and PETRONAS, and has contracted Technip Energies for engineering, procurement, and construction services.
- The U.S. LNG sector is expected to see significant growth, according to the International Energy Agency (IEA), with global LNG supply growth set to accelerate in 2026.
- Mubadala Energy aims to play a critical role in the energy transition by investing in low-emission energy sources, aligning with its broader energy transition and low-carbon investment strategy.
