Summary

The UP World LNG Shipping Index (UPI) gained 1.48% last week, closing at 169.60 points and outperforming the S&P 500, which rose by 0.85%. Despite this increase, trading volumes for UPI constituent companies remained below the annual average. Growth was driven by Japanese companies, Qatar’s Nakilat, and the U.S.-listed Capital Clean Energy Carriers. Additionally, the market saw increased LNG spot demand from Asia while Atlantic freight rates declined.

UPI & SPX

Last week, UPI, which tracks listed LNG shipping companies, gained 2.48 points, or 1.48%, closing at 169.60 points. The S&P 500 index gained 0.85%. The chart below shows both indices with weekly data.

Week 43-2024: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)
Week 43-2024: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)

Broader view

Despite the increase in UPI, the trading volume of UPI constituents fell below the average for this year.

According to a weekly summary from Reuters, there has been a resurgence in LNG spot demand from Asian customers, while European storage levels remain high at 95% capacity. Additionally, Atlantic freight spot rates have decreased to $26,750 per day, as reported by Spark Commodities. US LNG prices have dropped back below $3.

Constituents

The UPI bounced off the trend line last week and rose, albeit relatively modestly. The main credit for this goes to companies listed outside the United States, although such a simple geographic distinction cannot clearly be applied. Indeed, UPI’s growth was boosted by all three Japanese companies, Qatar’s Nakilat and one American-listed company.

That company is Greece’s Capital Clean Energy Carriers (NASDAQ: CCEC), which continues to grow, adding 6.9% last week. It was followed by the first Japanese company, namely NYK Line (TSE: 9101), with a 5.5% increase.
Mitsui O.S.K. Lines (TSE: 9104), “K” Line (TSE: 9107), and Nakilat (QSE: QGTS) followed in the wake of the named three rising companies, growing 2.9%, 2.7%, and 2.1%, respectively.

There were more declining companies than rising ones, but again, the declines were not significant. Golar LNG (NASDAQ: GLNG) was the biggest loser, correcting by a drop of 3.1% in its previous growth. Other losses were less than three per cent. Dynagas LNG Partners (NYSE: DLNG) and Awilco LNG (OSE: ALNG) were down 2.8% and 2.7%, respectively. But both are heading sideways.

BP (NYSE: BP) lost 2.4%, followed by Shell (NYSE: SHEL), New Fortress Energy (NASDAQ: NFE), and Korea Line Corporation (KRX: 005880), which had the same 2.1% loss. While oil and gas producers are heading sideways, NFE struggles to do the same. KLC is close to its support but still has a good chance of rising.

Another pair with the same loss is Flex LNG (NYSE/OSE: FLNG) and Tsakos Energy Navigation (NYSE: TEN), which lost 1.7%. TEN has staved off an attempt at a more significant drop, while FLNG is hovering near its long-term support.
Excelerate Energy (NASDAQ: EE) has corrected its prior growth with a 1.1% decline and remains uptrend. Cool Company (NYSE/OSE: CLCO) has lost 0.7% and continues its slightly illegible down/sideways move.

About UPI

Established in 2020, the UP World LNG Shipping Index is a rules-based stock index family designed to measure the performance of worldwide publicly traded companies involved in the maritime transport of liquefied natural gas (LNG). This unique index covers 19 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 email registration. The trial includes full access for fourteen days.

Source: UP-Indices.com