This year has seen an extreme increase in the importance of LNG. Russia’s invasion of Ukraine prompted EU countries to unplanned demand for large quantities of LNG as a replacement for Russian gas. This situation caused an increase in gas prices and demand for maritime transport capacities. In connection with the globally fluctuating stock markets, shutdowns of some LNG production terminals, and the conclusion of new contracts for previously unused capacities, they also affect the behavior of the UP World LNG Shipping Index. Not in the resulting value of the index but in the increased volatility of the Reduction Gas Ratio (RGR).
RGR ensures that only the part that corresponds to the size of its share in marine LNG transportation is included in the company’s weight in the UP Index. We expect this volatility to decrease over time. Therefore, we will return to this topic at an appropriate moment.