Concerns about a hedge fund’s control over a 10,000 mile natural gas pipeline

By Tyson Slocum

Today in a filing with the Federal Energy Regulatory Commission, we raise concerns that an entity seeking control over capacity of the 10,000 mile long Transcontinental Gas Pipeline, which controls the flow of 15% of America’s natural gas supply, failed to disclose its affiliation with a hedge fund that engages in significant speculative energy trading.

The August 13 Petition’s description of the applicant Six One Commodities LLC omits that it is controlled by the hedge fund Pinnacle Asset Management. Pinnacle Asset Management has a significant presence in U.S. and global commodity markets—particularly natural gas. Pinnacle Asset Management is a commodity trading adviser and commodity pool operator registered with the U.S. Commodity Futures Trading Commission, which means, among many other things, that the hedge fund manages commodity trading on behalf of institutional investors seeking to speculate in commodities. The failure of the Petition to identify all affiliates of Six One Commodities LLC may expose consumers and markets to anti-competitive practices. The application must be amended to include all energy-related affiliates of Six One Commodities LLC, and contain an affirmation to abide by all Commission regulations, particularly limits on affiliate communications.

Read our full protest here: Pinnacle