© Shutterstock / Ras Laffan
QatarEnergy is embarking on a partial restart of the Helium 2 plant which would be used for the Qatar market.
Phil Kornbluth of Kornbluth Helium Consulting said, “Word is on the street that there is a partial restart … which would mean production of around 280 mcf a year, out of a total annual capacity of 1.4 bcf. Gas is being produced for the domestic market to replace Barzan gas, so this is not about producing LNG and does not require the Strait of Hormuz to open.”
He added that while it was a positive development – the plant accounts for around 12% of Qatar’s helium capacity – it still leaves a big hole in the market. Qatar exports around a third of global helium supply.
Liquid helium customers from the Helium 2 plant are Air Liquide (50%), Linde Gases (30%) and Iwatani Corporation (20%), according to QatarEnergy. Since liquid helium continuously boils off, prolonged delays are resulting in the physical loss of stored product.
Production at the Ras Laffan Industrial City complex was fully halted following drone and missile attacks, impacting all three helium plants and sending spot prices soaring.
Semiconductors have been hardest hit. Manufacturers such as Samsung and SK Hynix are particularly vulnerable, with relying on Qatar for over 65% of its helium.
High-capacity hard disk drives are helium-sealed to reduce drag; prices for these components have risen 20% to 50% due to the shortage. Reduced allocations and price surcharges have become widespread.
Energy production and shipping remain in a state of limbo amid ongoing uncertainties over war negotiations and timelines. Following , commercial shipping lines want security guarantees before passing through the chokepoint.
US President Donald Trump said there is no timeframe for ending the war and Iran’s position it is not possible to reopen the strait because of what it claims are “flagrant breaches” of the ceasefire by the US and Israel.
The unpredictability has spread to the markets where, despite oil rising to over $100 a barrel, the S&P500 and Asian stock markets have been performing well, spurred by ongoing investment in sectors such as tech and AI.
