UP Indices offers many charts based on the UP World LNG Shipping Index. We publish a picture of one of them weekly with a short comment – a Chart of the Week. There is no archive of the pictures. If you want to get the picture of a chart to your mailbox, please sign up or try our free 14-day trial.
The UP World LNG Shipping Index (UPI) reached its first peak of the year and then declined for the second time in a row. A slowdown in growth signalled the decline, which was subsequently confirmed. At the same time, the UPI is approaching its 10-week moving average (equivalent to a 50-day average).
We discussed the reasons for the decline in our regular weekly review. The main reason is geopolitical influence, which at times drives growth and at other times has the opposite effect. In contrast, the traditionally weak second quarter will not be weak this year—at least according to our expectations—because the shortfall in Qatari LNG supplies will need to be offset by longer shipping routes. We view the return to coal as merely a temporary and emergency solution. Conversely, we see the commissioning of the Golden Pass terminal as the first of several infrastructure improvements.
