Summary
The UP World LNG Shipping Index (UPI) slipped 0.98% to 170.61 points, holding just above the key 170 threshold. The week was dominated by news of CoolCo’s planned delisting, which drove its shares up 18.5%. Awilco LNG also surged 11.1%, while Excelerate Energy, BP, and Shell posted moderate gains.
By contrast, New Fortress Energy plummeted nearly 10%, while Exmar and Cosco corrected their losses. Asian carriers — including Nakilat, MISC, and the Japanese trio — continued to weaken further. Dynagas LNG Partners also retreated, giving back optimism from earlier results.
UPI & SPX
The UP World LNG Shipping Index, which tracks listed LNG shipping companies, lost 1.69 points (0.98%), closing at 170.61 points, while the S&P 500 index lost 0.31%. The chart below illustrates the performance of both indices with weekly data.
Broader View
The most important news of the week is the announcement of the planned delisting of Cool Company (NYSE/OSE: CLCO) from public trading. Eastern Pacific Shipping, which owns 59.3%, is offering $9.65 per share. The transaction is expected to take place between the fourth quarter of this year and the first quarter of 2026.
The last significant wave of acquisitions in the sector took place in 2021, when Teekay LNG Partners and GasLog announced a buyout agreement, followed by GasLog Partners and Golar LNG Partners in 2023.
Maritime LNG transport, therefore, remains an attractive sector for investment, as confirmed by the development of the UPI and its movement above 170 points. In one of our previous reports, we highlighted the easing concerns about the decline in LNG spot rates in relation to this topic. Although they remain unusually low, they are not being discussed in any detail.
Last week confirmed fears of fragile growth, and the UPI corrected by less than one per cent. The weakening mainly affected Asian and Middle Eastern stocks.
Constituents
CoolCo recorded the highest weekly growth of 18.54%. It was followed by another Norwegian company, Awilco LNG (OSE: ALNG), which recorded an 11.1% growth and continues its upward trend. Incidentally, it has now reached the support level from December last year.
Further increases were only in the single digits. Excelerate Energy (NYQ: EE) grew by 5.3% from the support level at which it had been trading since July this year. BP (NYSE: BP) grew by 4.6% on the back of news, and Shell (NYSE: SHEL) added 3.69%. Chevron (NYSE: CVX) rose 2.53%.
Golar LNG (NYQ: GLNG) quickly returned to the support level it had broken through the week before, with a 3.7% increase.
Flex LNG (NYSE: FLNG) is showing some hesitation, rising 1.6% last week. The path upwards is still open.
New Fortress Energy (NYQ: NFE) alternates between the top positions with weekly gains and losses. Last week, it suffered its most significant decline, losing 9.83%. Exmar (BSE: EXM) is also experiencing a 5.67% loss. In contrast, Cosco Shipping Energy (SS: 600026) corrected by 5.4% after three weeks of growth.
Korea Line Corporation (KRX: 005880) remains stagnant, despite a 4.6% decline in its stock price. However, MISC (KLSE: 3816) broke through support with a drop of 3.1%. The same is true for Nakilat (QSE: QGTS), which fell 3.31% to levels last seen in April and June of this year.
Dynagas LNG Partners (NYSE: DLNG) has returned to levels last seen in April of this year, with a 3.5% decline. Optimism following quarterly results has evaporated.
Japanese companies lost around 2%, with NYK Line (TSE: 9101) down 2.1%, ‘K’ Line (TSE: 9107) down 1.8% and MOL (TSE: 9104) down 1.7%.
The UPI remains above 170 points, but the performance of Asian stocks is not providing much support for this effort.
Crystal Ball
Despite the growing global uncertainty caused by the US administration, our outlook remains optimistic. However, we expect increased volatility in the coming weeks. LNG spot rates rise, but the impact remains marginal for most UPI constituents. The market is watching for potential breakouts at key resistance levels, which could determine the next direction of prices.
Our outlook remains steadfastly positive in the long term. The burgeoning demand for LNG, bolstered by situational or management-driven actions and the potential for new long-term contracts, paints a promising picture. Investors should watch policy developments, market competition, and upcoming corporate earnings for further direction.
About UPI
Established in 2020, the UP World LNG Shipping Index is a rules-based stock index family designed to measure the performance of publicly traded companies worldwide involved in the maritime transportation of liquefied natural gas (LNG). This unique index covers 21 companies and partnerships worldwide, representing over 65% of the world’s LNG carrier fleet in 2020. The UP Index offers premium services with freemium and trial access to charts. With Freemium, users can access the basic UPI vs. S&P 500 chart after completing an email registration. The trial includes full access for fourteen days.
Final Note
This report primarily relies on technical analysis using weekly data.