LNG Shipping Stocks: An Uncertain Future Amid Spot Rate Pressures

Dec. 03, 2024 3:30 AM ET, , , , , , , , , , , , , , , , , 12 Comments
Tomas Novotny
398 Followers
(6min)

Summary

  • The LNG shipping sector faces challenges with declining UPI TCE rates and pressured spot rates, exacerbated by rising gas prices and market uncertainties.
  • Tankers are being diverted to Europe and potentially used for floating storage, which may stabilize or reverse spot rate declines.
  • Key players like Tsakos Energy Navigation and Flex LNG experienced significant losses, while New Fortress Energy and Awilco LNG saw gains, indicating a mixed industry outlook.
  • The UP World LNG Shipping Index dropped 2.50%, contrasting with the S&P 500's 1.06% gain, highlighting sector-specific pressures and broader market dynamics.

Tanker LNG FSRU Toscana Livorno, IMO 9253284, kotvící v přístavu Janov

Zigmunds Dizgalvis/iStock Editorial via Getty Images

UPI & SPX

Last week, the UP World LNG Shipping Index (UPI), which tracks listed LNG shipping companies, lost 4.18 points, equivalent to 2.50%, closing at 163.40 points. The S&P 500 index gained 1.06%. The chart below illustrates the performance of both

This article was written by

398 Followers
6/2022 - now: Member of Society of Technical Analysts in UK 9/2016 - now: UP forum s.r.o. 3/2016 - now: LNG shipping investor 7/2009 - now: Private investor at Warsaw Stock Exchange 11/2006 - now: Board Member of Czech National Association of Technical Analysis 2/2011-6/2016: Board Member at Financial Progress Group a.s. 1/2003-4/2013: Head of Sales and Marketing, Theatre Na zábradlí, Prague 2004-2010: Master degree of Arts Management at Academy of Performing Arts, Prague

Analyst’s Disclosure:I/we have a beneficial long position in the shares of EE, FLNG, GLNG, NFE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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