LNG shipping stocks remained largely stagnant last week, with the UP World LNG Shipping Index (UPI) inching down 0.16% to 164.43 points, even as the broader S&P 500 posted a solid gain. The index reflected a market in pause—more companies gained than lost, but volume dropped significantly, signalling summer-season hesitancy and growing investor uncertainty. Beneath the surface, however, volatility is quietly building. New Fortress Energy stood out with a dramatic 64% surge on news of a Puerto Rico contract, while several U.S.-listed companies continued steady gains. Losses were modest and tied mainly to corrections of earlier growth. With winter procurement on the horizon and shifting supply dynamics, the market appears ready for movement but still awaits a decisive trigger.
UPI & SPX
The UP World LNG Shipping Index, which tracks listed LNG shipping companies, lost 0.27 points (0.16%), closing at 164.43 points, while the S&P 500 index gained 1.72%. The chart below illustrates the performance of both indices with weekly data.
Week 27-2025: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)
Broader view
The UPI has experienced another downward trend, though it is now showing more sideways movement. Currently, there are slightly more rising stocks, with a ratio of 10 to 9 in favour of those that are increasing. Trading volume has dropped by half, a decline that cannot be attributed solely to the US stock market holiday on Friday. There is a sense of nervousness in the market, but also a willingness for greater volatility. We find ourselves back in a sideways movement; while the market appears poised for growth, that growth will not commence without significant momentum. With the summer season approaching and winter supplies soon to begin, this anticipated growth is likely to materialise.
Constituents
New Fortress Energy reported a remarkable 64% increase over the week, supported by above-average trading volume. This surge was primarily driven by positive news regarding a contract in Puerto Rico. However, it is still too early to determine whether this momentum will be enough to reverse the decline caused by high debt levels. Nevertheless, this growth indicates the energy sector is attracting investors who are willing to take on risks.
Other companies did not experience increases as significant as those of New Fortress Energy. Korea Line Corporation (KRX: 005880) experienced a 6.1% rise, but this came with low trading volume, which is not surprising given that the price is moving sideways.
Several companies recorded a growth of around 3%, including those listed on U.S. stock exchanges such as Tsakos Energy Navigation (NYSE: TEN), Cool Company (NYSE/OSE: CLCO), Chevron (NYSE: CVX), and Capital Clean Energy Carriers (NYSE: CCEC). CLCO, CCEC, and TEN continue their upward momentum. Additionally, BP (NYSE: BP), MISC (KLSE: 3816), and Shell (NYSE: SHEL) saw increases of 1.9%, 1.7%, and 1.3%, respectively. Other stocks experienced smaller gains, typically less than half a per cent.
The most significant losses were also relatively modest, with „K“ Line (TSE: 9107) experiencing the most significant decline of 2.7%. This was followed by Nakilat (QSE: QGTS), which fell by 2.3%. While „K“ Line is moving sideways, Nakilat corrected its previous gains.
Additionally, a notable group of companies showed similar movement, though their declines were not as pronounced. This group ranged from a -1.8% decline for Excelerate Energy (NYSE: EE) to a -1% drop for NYK Line (TSE: 9104). Importantly, companies showcasing sideways movement or correcting previous growth were predominant in this category. These include Awilco LNG (OSE: ALNG), Flex LNG (NYSE/OSE: FLNG), and the previously mentioned Excelerate Energy.
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.
Source: By Tomas Novotny, UP-Indices.com