Abu Dhabi Fund, Kimmeridge Greenlight $13 Billion LNG Site

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(Bloomberg) — An Abu Dhabi sovereign fund is investing in a $13 billion liquefied natural gas export terminal being developed on the US Gulf Coast by Kimmeridge Energy Management Co., as the Iran war upends global supplies of the fuel. 

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Mubadala Energy will provide equity financing for the Commonwealth LNG project in Louisiana, according to a statement by Kimmeridge’s company Caturus. The facility received a final investment decision that involves $9.75 billion in project financing, putting it on track to move forward with construction and start operations by 2030. 

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Other investors include EOC Partners, BlackRock Inc., Canadian Pension Plan Investment Board and a fund managed by Ares. 

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Mubadala’s investment is the latest sign that Middle Eastern investors are pushing ahead with dealmaking despite a conflict that saw the Islamic Republic strike energy and infrastructure assets across Arab nations. The UAE has also reaffirmed its plans to invest more than $1 trillion into the US, despite concerns that outlays could be impacted by conflict in the region.   

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Also read: UAE Stands by $1.4 Trillion US Investment Pledge Despite War

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The Commonwealth project is now the second ground-up LNG development to make a final-investment decision since US President Donald Trump lifted a ban on new export terminals when he took office nearly 16 months ago. It comes as the all-but closure of the Strait of Hormuz has choked off about one-fifth of the world’s LNG supply, causing prices to surge.

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Global demand for LNG is forecast to grow more than 35% by 2030 as nations in Asia and elsewhere grow their economies and push to use less coal. Developers in the US, the world’s largest natural gas producer, are racing to fill that demand with more than six multi-billion-dollar projects already underway to build or expand export terminals.

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Mubadala already owned a 24% stake in Caturus, the company founded by Kimmeridge to develop the LNG project. The Houston-based firm also produces natural gas in Texas.

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New Terminal

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Kimmeridge, based in Manhattan, primarily focuses on investing in US oil and gas drillers. It has raised about $6.5 billion in commitments from limited partners since opening in 2012. The firm’s co-founder, Ben Dell, is among the US energy sector’s most outspoken investors.

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Building a massive export terminal would be new for Kimmeridge. Yet while LNG projects requires billions of dollars and highly complex engineering, the sector hasn’t been the exclusive domain of energy supermajors.

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One of the industry’s pioneers, Charif Souki, was a restaurateur before founding, Cheniere Energy Inc., which is now the largest US LNG company by market value. The second biggest, Venture Global Inc., was founded by a financier and lawyer who had little prior energy experience.

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Kimmeridge acquired majority ownership of the Commonwealth project in 2024. It’s proposing to build the complex along the Calcasieu Ship Channel. The plant is slated to have the capacity to churn out about 9.5 million tons of liquefied gas annually, which is equivalent to about 7% of the US’s total current LNG production.

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Commonwealth has long-term purchase agreements from customers including Glencore Plc, Mercuria, Saudi Arabian Oil Co., EQT Corp. and Malaysia’s Petronas.

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Carlyle Group had considered an equity investment in Commonwealth but elected to walk from the project, Dell said in March.

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—With assistance from Stephen Stapczynski.

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(Updates with details from the second paragraph.)

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