Citadel, the multi-strategy hedge fund major led by Ken Griffin, has made one of its largest investments in the US natural gas market, agreeing to acquire assets from Paloma Natural Gas in a deal valued at approximately $1bn, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as highlighting that the acquisition grants Citadel access to acreage and producing assets in the Haynesville shale basin, though the firm will not take on operational responsibilities. While Citadel is already one of the most active traders of physical gas in the country, this move marks a rare hedge fund foray into the production side of the energy industry.

Griffin’s investment comes amid a surge in demand for US natural gas, driven by rising LNG exports and growing power consumption from data centres and artificial intelligence. Citadel joins a wave of energy traders and institutional investors seeking exposure to the gas market – Gunvor Group is expanding its gas production footprint, while Mercuria Energy Group has invested in Black Bayou Energy Hub, a gas storage facility in Louisiana.

"Investing in the growth of independent gas producers helps to ensure America’s energy independence, and Citadel performs an important role in that effort," a Citadel spokesperson said in a statement, without disclosing details of the transaction.

Paloma Natural Gas had listed 57,000 net mineral acres in Louisiana’s Haynesville shale basin, a key production hub due to its proximity to LNG export terminals set to launch in the coming years. Other investors, including Expand Energy, have also been scaling up in Haynesville and Appalachia.