From Yahoo Finance: 2025-03-19 13:54:00

Citadel, led by Ken Griffin, invested $1 billion in US natural gas assets from Paloma Natural Gas LLC. The move expands their trading portfolio and aligns with a trend of increased interest in natural gas investments. Griffin’s firm has seen significant profits from commodities, particularly in natural gas trading.

The deal gives Citadel access to acreage and producing assets but won’t involve direct operation. The move reflects a broader trend of hedge funds entering the drilling and production side of the industry. Citadel’s foray into physical trading allows them to capitalize on arbitrage opportunities and act as a natural hedge to financial trading.

Demand for natural gas is on the rise, fueled by increased US exports and growing power consumption. Other energy traders, like Gunvor Group and Mercuria Energy Group Ltd., are also investing in gas assets. Physical trading operations can be complex, requiring long-term commitments and registration in different areas of the market.

Paloma Natural Gas held 57,000 net mineral acres in Louisiana’s Haynesville shale basin. Other hedge funds, like Jain Global and Balyasny Asset Management, are also building out their physical gas trading operations. Citadel’s early investment in physical gas trading has positioned them as a major player in the North American market.

Read more: Citadel Expands Further in US Natural Gas With $1 Billion Deal