- European gas policy shift supports LNG prices.
- Asian spot LNG rises to $11.50/mmBtu on EU gas move.
- US-China weekend talks trigger late-week interest.
LNG shipping shares last week registered moderate increases, bolstered by the changing European energy policy and stable corporate performance. The UP World LNG Shipping Index (UPI) increased 2.08% to close at 159.01 points as the S&P 500 decreased 0.47%, reports LNG Shipping Stocks.
European Gas Policy Changes Push Prices Higher
European gas prices kept increasing as the EU increased efforts to wean off Russian imports. The policy change cemented the position of LNG in the energy mix of the continent. Talks on a blanket ban on Russian gas imports are likely to follow.
Asian spot LNG prices tracked this upward trend. According to Reuters’ Marwa Rashad: “Prices of Asian spot LNG rose slightly this week, tracking European gas prices which gained ground following the EU’s plan to phase out Russian gas, but prices are expected to ease as Chinese demand remains muted.” June delivery prices into Northeast Asia rose to $11.50/mmBtu, up from $11.00/mmBtu the previous week.
Weekend US-China Talks Spark Late Interest
As the LNG shipping market was somewhat subdued, attention turned briefly at weekends to speculation over weekend discussions between China and the US before sparking a late-week burst of interest.
Excelerate Energy Tops With Robust Quarter Results
Excelerate Energy (NYQ: EE) registered the biggest gain of the week at 11.5%, driven by robust quarterly results and strategic funding transactions. The firm issued new shares and bonds to raise funds for purchasing New Fortress Energy’s Jamaican assets.
CEO Steven Kobos explained: “It will enhance our operational and financial profile. And finally, the acquisition will provide us with a new pipeline of growth opportunities in Jamaica and the Atlantic Basin.”
Dynagas LNG Partners Trails Not Far Behind
Dynagas LNG Partners (NYQ: DLNG) recovered almost 10%, bouncing back to crucial technical levels. In contrast to EE and its return to pre-growth levels, DLNG corrected its decline from the prior year-start and is currently trading inside its 2023 range.
BP, Cool Company Enjoy Ongoing Momentum
BP (NYQ: BP) gained almost 6%, while Cool Company (NYQ/OSE: CLCO) appreciated by 4.7% for the fifth week in succession. While volume continues to stay low, sustained gains indicate a possible beginning to a new upturn in sentiments within the markets.
Other Movers
- Capital Clean Energy Carriers (NYQ: CCEC): +3.9%, past critical resistance levels
- New Fortress Energy (NYQ: NFE): +3.9%
- Nakilat (QSE: QGTS): +2.6% to new levels
Golar LNG Declines
The sharpest drop of the week belonged to Golar LNG (NYQ: GLNG), which dropped 4.5%. The stock is evaluating its future direction with unclear technical signals.
Outlook: Long-Term Positivity with Short-Term Turbulence
Even with geopolitical tensions and below-average spot rates, UPI remained resilient. The market is awaiting possible breakouts at the resistance levels, which will determine near-term action. “Despite the growing global uncertainty caused by the US administration, our outlook remains cautiously optimistic.”
Though volatility should rise, the medium-term perspective for LNG shipping is positive, underpinned by expanding global demand, strategic takeovers, and possible new long-term supply agreements.
Investors should watch:
- Policy developments
- Competitive environment
- Upcoming corporate earnings
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Source: LNG Shipping Stocks
