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17 hours ago 2 min read
Russia has introduced temporary export controls on helium to maintain consistent supplies to the domestic market, according to a Reuters report.
The world’s third largest helium supplier needs the gas to produce fibre optics which are used by its army to control drones.
The move marks another pressure point on international helium with a third of global supply down following attacks to Qatar’s Ras Laffan plant.
Tentative plans are underway to restart production, but that is contingent on a lasting peace beyond the , and no complications to introduced by the US in the Strait of Hormuz and resumption of secure shipping.
The Middle East conflict continues to reshape supply chain dynamics.
Rewind to last October, the global helium market was , with Russian volumes flooding into Asia, despite western sanctions and trade restrictions. But the crisis continues to recalibrate strategies.
The Amur gas processing plant is the world’s largest producer of helium, with capacity to produce 60 million cubic metres annually.
Phil Kornbluth, of Kornbluth Helium Consulting, said the current supply squeeze due to the loss of Qatari production has nothing to do with this export control move from Russia.
“I don’t think that this will have a big impact, since most of the available Russian product was likely to replace Qatari product in China,” he said.
The global supply disruptions and surge in energy prices have been a huge boon to Russia, providing around $150m in extra revenues daily.
Russia has expanded exports to China, which relies on helium for semiconductor manufacturing – and reports indicate sanctions are having limited impact.
New data from analytics firm Kpler published by German environmental organisation Urgewald showed the EU imported 69 cargoes of LNG from the , generating an estimated €2.88bn ($3.33bn) in payments to Russia in the first quarter alone.
Russia recently announced it plans to add 700 mmscf/year of helium capacity , delegates attending OilChem China Gas Week heard earlier this month.
