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9 min ago 2 min read
China has heaped more international supply chain pressure on helium by announcing a temporary export ban.
The measure was introduced under the country’s Foreign Trade Law and applies to all overseas shipments.
Authorities did not specify any destinations, exemptions or licensing arrangements.
Phil Kornbluth of Korbluth Helium Consulting said before the Middle East war, the China market totalled around 1 bcf a year, with 85% imported from Qatar and Russia, and around 150 mmcf/yr produced domestically.
Due to the and previously announced in April, companies have had difficulty exporting Russian helium to countries other than China.
“For that reason, some enterprising Russian companies have been exporting Russian helium to China, and then re-exporting it to other countries,” he said.
“This action will take some Russian helium off the market and was probably taken by China to ensure additional supply for the Chinese market and support the Russian export controls.”
The recent resumption of tensions in the Middle East has created more pressure and uncertainty on LNG and helium production.
Kornbluth outlined where the US and Iran stalemate continues, LNG and helium production remain closed, and allocations continue.
