The global LNG transportation index (UP World LNG Shipping Index) increased by 7.92 points, equivalent to 3.58%, reaching 229.39 points and getting close to the 230-point level. While the S&P 500 index faced a decrease of 0.57%, this increase in the LNG transportation index indicates a positive change in the market.
Details of the index increase and company performance
This week, trading volume remained low, with the ratio of positive to negative changes in the index being 13 to 7. The average price change also reached 0.99%, and the weighted index (wUPI) increased by 1.8%. New Fortress Energy topped the list with a 41% increase due to an agreement to lease 10 mobile turbines with a maximum production capacity of 300 megawatts to an investment company in the United States. Companies Excelerate and Nakilat also followed this event with increases of 9% and 7.6%, respectively.
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Increase in LNG prices in the Asian market
The price of LNG in Asia rose to $32.50 per million BTU for the fourth consecutive week, reaching the highest level in recent years. This price increase is due to geopolitical tensions in the Middle East and seasonal winter demand. Additionally, base prices in Europe also reached $31.91 per million BTU, indicating increased demand and concerns about energy supply in the winter season.
The rental rates for LNG carriers have also increased; in the Pacific, they reached $44,500 per day, and in the Atlantic, they reached $28,000 per day. These changes indicate a market moving towards strengthening prices and increasing demand.
According to available information, Venture Global has also begun its commercial activities at the Plaquemines terminal. These activities will help strengthen LNG transportation infrastructure in the United States and could have a positive impact on global markets.
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