Summary
The UP World LNG Shipping Index edged higher by 0.59% to close at 183.44 points, extending its record-breaking run and setting yet another all-time high. While the gain was modest compared to recent weeks, the index continued to outperform the S&P 500, which slipped 0.1%. Trading volume remained above average with a balanced 10:9 ratio of advancing to declining stocks, reflecting consolidation after the previous week’s strong rally. Japanese shipping companies led the gains, with Mitsui O.S.K. Lines and “K” Line both posting 5% increases, while Golar LNG recorded its sixth consecutive weekly gain at 4.14%.
The week’s most significant development was the landmark 27-year LNG supply agreement between QatarEnergy and Japan’s JERA for 3 million tonnes per annum, marking the return of substantial Qatari gas supplies to one of the world’s largest LNG consumers and reinforcing the strategic importance of long-term contracts in the sector. Warmer temperatures across Europe and Asia led to lower gas prices and stabilised spot tanker rates at the previous week’s levels. On the downside, Awilco LNG fell 8.4% as low spot rates continued to weigh on the company, while Capital Clean Energy Carriers and New Fortress Energy also posted losses. The long-term outlook remains positive, supported by steam vessel scrapping and new liquefaction capacity additions, though weather, quarterly earnings, and geopolitical events will drive near-term volatility.
UPI & SPX
The UP World LNG Shipping Index, which tracks listed LNG shipping companies, gained 1.08 points (0.59%), closing at 183.44 points, while the S&P 500 index lost 0.1%. The chart below illustrates the performance of both indices with weekly data.
Broader View
UPI continues to set new historical highs.
Trading volume remains above average, with the ratio of rising to falling companies at 10:9. The median movement was 0.71%.
Warming temperatures led to lower gas prices in Asia and Europe—spot tanker rates stabilised at last week’s levels. The news of the week is the contract between QatarEnergy and Japan’s JERA for multi-year LNG supplies, marking the return of Qatari gas to one of the world’s largest consumers and further strengthening LNG as a strategic energy commodity.
Constituents
Two Japanese companies, Mitsui O.S.K. Lines (TSE: 9104) and “K” Line (TSE: 9107), posted 5% growth. While MOL broke above resistance, “K” Line is now just below resistance. The third Japanese company, NYK Line (TSE: 9101), remained sideways and declined 0.4% last week.
The third-largest growth also occurred in Asia, driven by Korea Line Corporation (KRX: 005880). Its 4.7% growth broke through resistance, although more significant growth was rejected during the week. Long weekly wicks are a typical feature of this company’s chart.
Golar LNG (NYQ: GLNG) also posted a 4% increase, specifically 4.14%. This is its sixth consecutive weekly increase and the first that was not significantly reduced during the week. Trading volume is also above average. However, the main resistance will come at the $45 level.
Regarding growth achieved, two additional companies are worth mentioning. BP (NYSE: BP) grew by almost 3%, and Chevron (NYSE: CVX) added 2.24%. BP is approaching a historical resistance level, while Chevron continues its growth trend unabated.
And now it’s Nakilat‘s (QSE: QGTS) turn, which did not dazzle with a 2.2% growth rate, but the growth is still significant. It has overcome the resistance magnetism we discussed last time and is approaching the maximum resistance of five riyals.
The four companies with green candles also include COSCO Shipping Energy Transportation (SS: 600026, +1.1%), ADNOC Logistics & Services (ADX: ADNOCLS, +0.71%), Excelerate Energy (NYQ: EE, -0.6%), and Tsakos Energy Navigation (NYSE: TEN, -0.7%). COSCO has moved its price slightly higher; ADNOC is hovering around support. Excelerate Energy and Tsakos, despite a midweek decline (but a green candle), are holding just below resistance and are poised for further growth.
This time, Awilco LNG (OSE: ALNG) took the lead among the declining companies, weighed down by low spot rates. After breaking through support, the decline continues, with an 8.4% loss, and there is no reason on the horizon for the price not to reach spring levels around NOK 2.5.
Capital Clean Energy Carriers (NYQ: CCEC) lost 6.53%, with the price approaching support in a sideways trend.
New Fortress Energy (NYQ: NFE) took only the third-largest decline this time. The 5.26% decline meant a really quiet week for this volatile stock.
Shell (NYSE: SHEL) failed to maintain its growth and ultimately recorded a 2.26% decline. Flex LNG (NYSE: FLNG) is still hovering at the edge of resistance, awaiting Wednesday’s quarterly results. Last week, it fell by 1.2%.
Dynagas LNG Partners (NYSE: DLNG) fell symbolically by 0.53%.
Crystal Ball
Our outlook remains positive in the long term. The scrapping of steam vessels and the addition of new liquefaction capacity are pushing the sector higher.
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 comprises 21 companies and partnerships worldwide, representing more than 65% of the global LNG carrier fleet in 2020. The UP Index provides premium services, offering 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.