The UP World LNG Shipping Index rose by 1.44%, reflecting a positive trend in the LNG shipping sector, while the S&P 500 saw a 0.51% increase. Gas buyers are beginning to refill storage, and with additional liquefaction capacity coming online in the summer, LNG shipping demand is expected to rise. The main uncertainty comes from potential U.S. tariffs, though strong Asian demand for contracted LNG supports optimism.
Among individual companies, New Fortress Energy (NFE) and Golar LNG (GLNG) saw notable gains of 20.6% and 11.5%, respectively, due to favourable contract extensions and financing deals. Other companies, such as Flex LNG, Tsakos Energy Navigation, and Shell, also posted moderate gains. However, Korea Line Corporation saw a 3% drop. The sector remains cautiously optimistic, with investors watching for resistance breakouts that could shape future price movements.
UPI & SPX
The UP World LNG Shipping Index, which tracks listed LNG shipping companies, gained 2.39 points (1.44%), closing at 168.37 points, while the S&P 500 index rose by 0.51%. The chart below illustrates the performance of both indices with weekly data.
Week 12-2025: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)
Broader view
Gas buyers are slowly starting to fill their storage facilities, and it is precisely because of their lower levels that more gas will be needed. This, combined with the new liquefaction capacity going online in the summer, will increase demand for LNG shipping. We believe this will happen depending on gas prices and spot rates starting in the spring months. So the sector outlook is positive.
Marwa Rashad of Reuters quoted Laura Page of Kpler as saying, “Asian demand for contracted LNG, such as from Qatar, is strong, with oil-linked contracts trending at a discount to spot prices.”
The primary source of uncertainty is still the US administration and its threat of tariffs.
The UPI has risen to resistance, which has already stopped it from rising three times this year. The third time was this week, as several companies in the index had run better during the week than their closing prices.
Constituents
Notably, the two companies experienced significant growth. New Fortress Energy (NYQ: NFE) surged by 20.6%, and Golar LNG (NYQ: GLNG) saw an 11.5% increase. Both companies attributed their growth to positive news releases. NFE extended its contract with the Puerto Rican government for 80 days, and GLNG secured a financing agreement with FLNG Gimi. Technical analysis charts also signalled a potential upside for both companies. In contrast, some companies did not react to this pattern and ended the week lower than their highest weekly prices were.
Several companies outperformed their closing prices during the week. Flex LNG (NYQ/OSE: FLNG), Tsakos Energy Navigation (NYQ: TEN), MISC (KLSE: 3816), Nakilat (QSE: QGTS), Cool Company (NYQ/OSE: CLCO), and Awilco LNG (OSE: ALNG) all saw gains. FLNG rose by 2.7%, TEN and MISC by 1%, Nakilat by 0.1%, CLCO by 0.2%, and ALNG by 2.7%. These movements have primarily prevented the UPI from breaking the resistance above.
Capital Clean Energy Carriers (NYQ: CCEC), which we also expected to see more upside than it has shown, is also close to the resistance. The resulting 0.1% gain was slightly less than the price reached during the week.
Conversely, Chevron (NYQ: CVX), bp (NYQ: BP) and Shell (NYQ: SHEL) took advantage of the potential, rising 4.9%, 3.5% and 3.3%, respectively. Excelerate Energy (NYQ: EE) was up 3%.
The other trio of UPIs, the Japanese companies, had gains/losses in the teens. They, too, are still holding near their resistance.
Back to support with a three per cent drop was Korea Line Corporation (KRX: 005880).
Crystal Ball
The short-term outlook remains cautiously optimistic, though we expect increased volatility in the coming weeks. LNG spot rates stayed low, 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 price direction.
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 keep a keen eye on policy developments, market competition, and upcoming corporate earnings for further direction.
Source: By Tomas Novotny, UP-Indices.com