LNG shipping stocks: First growth phase complete
The UP World LNG Shipping Index lost 6.33 points (2.79%) last week, closing at 220.61 points, while the S&P 500 gained 4.54% — its best week in a year — on ceasefire optimism and the opening of the Strait of Hormuz. The divergence is telling: good news for equities broadly is not necessarily good news for LNG shipping. The UPI has concluded its first growth phase of the year, with gainers outnumbering decliners 7:13 and a median change of -1.46%. The geopolitical situation remains actively unstable — reports of the Strait’s opening were followed a day later by reports of its closure, and spot rates briefly exceeded $100,000/day for the Atlantic route.
Capital Clean Energy Carriers surged nearly 14% on a new 10-year contract announcement, while Flex LNG (+5.51%) and Awilco LNG (+5.36%) also gained. Korea Line Corporation fell 11% in a correction, COSCO lost nearly 9%, and Shell, BP, and Chevron all declined as the energy supply premium faded. The long-term outlook remains positive, with vessel scrapping, new liquefaction capacity, and longer shipping routes as structural tailwinds.
The UP World LNG Shipping Index, which tracks 20 listed LNG shipping companies, lost 6.33 points (2.79%), closing at 220.61 points, while the S&P 500 index gained 4.54%. The chart below illustrates the performance of both indices with weekly data.
Week 16-2026: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)
As expected, the UPI weakened and concluded this year’s first growth phase, with turbulent markets sending several companies into a wait-and-see, sideways phase.
The ratio of rising to falling companies was 7:13. The median change was -1.46%. Interestingly, the UPI Weighted, an index where all companies have equal weight, fell by 3.29%.
The geopolitical situation remains actively unstable; optimistic reports about the opening of the Strait of Hormuz were replaced a day later by reports of its closure. Spot rates for LNG tankers rose, exceeding $100,000 per day for the Atlantic, due to Spark Commodities.
Korea Line Corporation (KRX: 005880) fell the most, by 11%, correcting its nearly 30% gain from the week before last.
The second-largest decline was seen in COSCO Shipping Energy Transportation (SS: 60026), which lost nearly 9%. The price reached the support level of the seven-week range it has been trading in.
Other declines were more moderate. Shell (NYSE: SHEL) fell 4.77% following Friday’s reopening of the Strait of Hormuz, while BP (NYSE: BP) and Chevron (NYSE: CVX) dropped 3.98% and 2.42%, respectively, for the same reason. Chevron has been weakening for the third week in a row, while the other two companies are currently moving sideways and hesitating on their next direction.
Dynagas LNG Partners (NYSE: DLNG) lost 3.67%, though its price has been rising slightly since October. New Fortress Energy (NASDAQ: NFE) fell 3.3%, slightly correcting its previous one-week gain.
Golar LNG (NASDAQ: GLNG) also corrected its previous gains, losing 2.7% and trading sideways.
Among Japanese companies, Mitsui O.S.K. Lines (TSE: 9104) fell the most, by 2.6%. NYK Line (TSE: 9101) lost 1%, and “K” Line (TSE: 9107) lost just 0.06%. MOL is thus failing to live up to the hopes for continued growth that its chart had signalled a month ago. While MOL is correcting its gains or falling, the other two companies are moving sideways again. MISC (KLSE: 3816) is also moving sideways after a 2% decline.
Among the rising companies, Capital Clean Energy Carriers (NASDAQ: CCEC) performed particularly well, gaining nearly 14%. On Wednesday, the company announced the transfer of the Amore Mio tanker to a new joint venture structure, along with a new 10-year contract with a three-year option for this tanker.
FLEX LNG (NYSE: FLNG) and Awilco LNG (OSE: ALNG) followed in the growth rankings with gains of 5.51% and 5.36%, respectively.
ADNOC Logistics & Services (ADX: ADNOCLS) followed Nakilat (QSE: QGTS) with a one-week delay and returned to its pre-war price range. ADNOC gained 2.8%, while Nakilat added 0.68%.
Excelerate Energy (NYSE: EE) is testing the upper boundary of its sideways range; the stock rose 1.51%.
Tsakos Energy Navigation (NYSE: TEN) rose 1% and is looking for its next direction. This time, attempts at both a decline and a rise were rejected, resulting in a sideways trend.
The second quarter is typically the weakest seasonally, but this year will be different—geopolitical circumstances have knocked nearly 20% of global LNG production offline. While Europe still enjoys a certain advantage over Asia, it now needs gas, and rising prices are hitting the poorest consumers, such as those in Bangladesh, the hardest. Russia is trying to capitalise on the situation and offer an alternative, while Europe, paradoxically, is also increasing its imports of Russian LNG—partly in response to the U.S.’s unstable stance. On the other hand, unlike Russia, the United States remains a democracy.
The shortfall in supplies will have to be replaced. We view the return to coal as temporary; we expect a gradual increase in spot supplies and greater geographic diversification of sources, which will bring longer shipping routes and higher demand for tankers. Carriers operating on the US–Europe or Australia–Asia routes are in a more stable position.
The outlook remains volatile, but positive in the long term. Companies with spot tankers are benefiting from high rates and longer distances. The gradual phasing out of steamers and the addition of new liquefaction capacity will continue to drive the sector forward.
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