LNG shipping stocks: Winter is coming
The UP World LNG Shipping Index, the world’s only stock index focused on LNG shipping companies, added 0.63% last week. U.S. stocks represented by the S&P 500 index gained 3.65%.
UP Index was pushed down primarily by Asian stocks but still closed in the blacks. Two minor constituents from Norway gained 14.6% (Awilco LNG, OSE: ALNG) and 13.3% (Cool Company, OSE: COOL). The rest of the constituents was closer to the Norwegians than the Japans.
Chart of the UP World LNG Shipping Index and S&P 500 Index shows signs of optimism. SPX pushed the UP Index lower for three weeks, and now the UP Index can use the momentum of rising markets. Autumn and winter are the strongest seasons for LNG shippers. Due to Europe demand and Russian aggression on Ukraine, the world demand for LNG is increasing continuously. Russia has to liquefy its natural gas to offer it to the new Asian markets; it is not so easy as sending it via the existing pipeline in Europe. Japanese companies join the Russian projects, but missing the US and European technologies might cause problems for Russian LNG export.
Back to the constituents of the UP Index. The third most successful was Golar LNG (NYQ: GLNG), which rose by 5.2%. Belgian Exmar NV (BSE: EXM) gained 4.4%, and New Fortress Energy added 2.7%, the same as Malaysian MISC Berhad (KLSE: 3816).
The most significant decline was suffered by Dynagas LNG Partners (NYSE: DLNG), which lost 6.9%. But the Asian stock made the majority in the decreasing group. Korea Line Corporation (KRX: 005880) lost 5.7%, and the Japanese trio – MOL, “K” line, and NYK Line – lost 3.8%, 3.8%, and 1.8%.
UP World LNG Shipping Index is a rules-based stock index family designed to show and measure the performance of world publicly traded companies involved in the maritime transport of liquefied natural gas (LNG). This unique index covers 19 companies and partnerships worldwide, like the USA, Qatar, Japan, Norway, South Korea, and Malaysia. The index covers over 65% of the world’s LNG carrier fleet. UP Index is a premium service. We offer freemium (the basic chart of the UP Index and S&P 500 index) and trial access to all charts.