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19 min ago 1 min read
An unnamed global, investment-grade industrial gas company has signed a five-year helium offtake agreement with industrial gas developer US Energy for supply from its Big Sky Carbon Hub in Montana.
The agreement will provide contracted cash flow to support phase one commercial operations, which are targeted to begin in Q1 2027.
It’s a full take-or-pay contract, meaning the buyer must pay for all the helium produced over the five-year term. The price is fixed at $285 per thousand cubic feet (mcf).
Volumes from the first phase are fully contracted at up to 1.2 million cubic feet (mmcf) of helium per month.
A second phase, targeted for 2029, is expected to deliver two to three times greater processing capacity.
Ryan Smith, President and CEO of US Energy, said the agreement takes Big Sky from a development-stage asset to a contracted industrial gas plant.
“[It] reflects the strength we’re seeing in the helium market…where constrained global supply and increasing demand for reliable volumes are supporting a step up in long-term pricing.”
