Gulf investment in US liquified natural gas continues to grow as Mubadala Energy — an arm of one of Abu Dhabi's sovereign wealth funds — entered the market on Thursday through a deal with energy investor Kimmeridge, acquiring stakes in American gas assets.

Mubadala Energy will acquire a 24.1% interest in New York-based Kimmeridge’s SoTex HoldCo LLC via newly issued equity, the UAE company said in a statement. SoTex owns 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 million metric tons per year LNG facility currently under development at the mouth of the Calcasieu Pass in Louisiana. 

A final investment decision on the Louisiana project is expected later this year, determining whether the companies will move forward with development. The facility is expected to deliver its first offtake in 2029, according to the statement.

Kimmeridge Texas Gas has a net production of 500 million cubic feet equivalent a day, a figure expected to triple to 1.5 billion by 2031, Mubadala Energy said in a statement.