SPECIAL FEATURE | 2023 WORLDWIDE HELIUM MARKET

The 2023 worldwide

helium market
Helium tightness relaxes – return to supply-demand
balance remains uncertain

By Maura D. Garvey

O
ur assessment of the worldwide weakness has dampened demand for (GSA) which is handling the sale. Of
supply of helium is about 5.9 helium, too, alleviating some supply note is that the sale excludes the Crude
billion cubic feet (Bcf) for 2023, challenges. But sometimes slower Helium Enrichment Unit (CHEU)
up from about 5.7 Bcf in 2022 – back container shipping remains an issue. As that purifies the crude helium from
where we were in 2021. We forecast helium suppliers works to deliver under the Federal Reserve and delivers it
that worldwide supply will be short of these conditions, it is a reminder that into the BLM Pipeline. It is owned by
demand until late 2024 if the large new the helium supply chain is fragile. Cliffside Refiners Limited Partnership
sources of helium come onstream. The The economy impacts the demand (CRLP) and leased to the BLM. The
shortage that began in early 2022 when for helium applications and the assets to be sold as the Federal Helium
Amur suffered explosions at its first two bringing on of new sources. We have System include the mineral rights to the
LNG trains is still having an impact. sputtering economies in the rest of the Bush Dome Reservoir, the remaining
And history has taught those of us in world, while the surprising strength government-owned crude helium in the
the helium business that large plants in the US endures. Around the world, Federal Helium Reserve, the pipeline
typically incur delays due to unexpected there is new evidence of weak trade that connects the Federal Reserve to
technical issues. Plenty of uncertainty data from China and further signs that privately-owned natural gas processing
remains. Germany’s industrial engine needs a plants and helium refining facilities, the
While 2022 was marked by shortage major tune-up. How all this pans out Cliffside Plant facility, and a few other
due to the series of unrelated events (see over the remainder of the year and into elements.
‘The 2022 worldwide helium market’, 2024 will affect helium demand. The sale had been presented as two
August 2022, gasworld US Edition, The BLM is serving as the flywheel opportunities. Opportunity one is about
p.30), so far 2023 has not experienced and is allocating crude helium on 1 Bcf of federally owned crude helium
such disruptions at major sources – but the pipeline. Messer took over as the and opportunity two is approximately
several issues still linger, like reduced third-party operator of the helium 800 mmcf of federally owned crude
helium supply from Algeria and Amur production facilities (excluding the helium and the Federal Helium System.
having been down until recently. pipeline) at BLM back in June 2022 The GSA expects the sales process
Next to this, the Bureau of Land and production is flowing smoothly. will take between eight and nine
Management (BLM) has been BLM production in 2023 appears to be months. Open house events at the
operating well. It was down for planned on track to produce about 680 million Cliffside Facility took place or will
maintenance mid-April and was cubic feet (mmcf), up from 452 mmcf take place September 10 and October
back to normal production by May 1. from 2022 due to the extended outage. 26. The GSA has a contractor, The
ExxonMobil went down for planned The sale of the BLM Federal Helium Edelgas Group, to organize, promote
maintenance for about a month System assets was announced June 2022 and conduct a Bidder’s Conference. The
beginning July 10. The global economic by the General Services Administration Bidder’s Conference includes a forum

36 | gasworld US Edition • October 2023 gasworld.com

 SPECIAL FEATURE

for prospective buyers to learn about “We forecast that degrees, depending on where they
source their helium. There has been a
the sale of the property. The one-day
event is scheduled for October 10 at the worldwide supply will measurable increase of supply flowing
Fairmont Hotel, Dallas, Texas. This sale from the US into Europe, while at the
will be a sealed-bid auction for both be short of demand same time supply from Europe into
opportunities due November 13 at 11am until late 2024 if the the US has increased, reflecting the
complexity of various helium suppliers
CST. Bidders must register and provide
a deposit for each bid. Sealed bid large new sources of managing the logistics of supply to
opening is Nov 15, 2023, 2pm CST. end-use customers under contract.
In 2023, helium demand grew to helium come onstream” European Commission (EC) helium
take up available supply. For 2023, export/import statistics reflect the
worldwide helium demand is estimated is used as a purge gas in lithography flow of helium to and from the US and
by Intelligas Consulting at 5.9 Bcf, flat tools, according to Lita Shon-Roy, Europe.
over the past decade due to the three CEO of materials advisory TECHCET. From Figure 1, you can see the
shortages that occurred during that According to analysis performed by complexity of supplying helium, which
time, including the impact of Covid-19. TECHCET, semiconductor applications is perishable under very high vacuum
Natural demand is closer to 6.5 Bcf, we comprise around 20% of the global at very cold temperatures, from a very
calculate. helium market. US semiconductor few specialized companies with a few
Worldwide helium demand is manufacturing is about 10% of the remotely located production plants
forecast to grow at 3% to 5% per year global market at present, expected for delivery to hundreds of thousands
once the global economies recover, the to grow to >12% with announced fab of customers all over the world. We
war in Ukraine ends, and new supplies expansions. US semiconductor helium predict global growth at 3% to 4% per
come to fruition. Fastest growth will demand will be growing an estimated year as supplies ramp up and come
be in Asia, particularly China with 13% CAGR assuming all chip fabs that on-stream.
industrialization growth. Slower growth have been announced come about. Growth will be higher in Asia at
is expected in the US, Europe, and Both the US and Europe worked to 5% to 7% and lower in the mature
Japan. strengthen semiconductors in their economies of the US, Europe, and
Intelligas Consulting, on behalf of regions and support growth through Japan. This could increase faster in
gasworld (US Edition), spoke with CHIPS Acts. It is finally looking like we the US and Europe as the CHIPS Acts
the helium experts and managers at will have the helium supply to support support semiconductor growth in
major industrial gas companies, market this growth. those regions. Regardless, the world’s
segment experts, and distributorships helium demand-supply relationship is
throughout the year to get the insider’s Complex supply chain predicted to move into surplus when
view of this critical market. Those views Helium is a global commodity delivered the new large, planned helium sources
and opinions are reflected here. though a complex global supply chain come fully on-stream from 2025 to
The largest end-uses of helium where industrial gas companies seek 2027.
include liquid helium for Magnetic diversity of sourcing and reliability As noted in last year’s review of
Resonance Imaging (MRI) from sourcing operations. helium supply, several smaller US
manufacturing and service, gaseous Worldwide helium supply in 2023 sources started up early in 2019. The
helium for lifting (ie., balloons, airships, is about 5.9 billion cubic feet (Bcf), Haven Midstream (formerly Tenawa)
etc.), electronics (semiconductor and in balance with demand, as shown in facility experienced an explosion and
fiber optics for 5G), and aerospace. Figure 1. Despite Irkutsk and several fire last year and the plant has yet to
Fiber optics demand is expected to new smaller non-hydrocarbons well restart. NTEC Helium purchased the
grow CAGR through 2030, while sources coming on-stream late in the Tacitus Corporation facility in Navajo
demand for semiconductor device year, supply remains constrained. County, AZ late in 2021 and started off
manufacturing is expected to decline Several of the major industrial gas with less than anticipated production
-2% to -3%. The decline looks less companies are still allocating helium to in 2022, but has drilled a new well and
severe than the decline in usage customers. production is increasing.
expected for other materials used for The supply disruptions have affected New offshore sources include: 270
chip manufacturing, because helium industrial gas producers to varying mmcf of nameplate capacity in Irkutsk

October 2023 • gasworld US Edition | 37

SPECIAL FEATURE | 2023 WORLDWIDE HELIUM MARKET

Figure 1

Europe

CANADA RUSSIA
Odolanow Irkutsk
Orenburg Amur
Thor NAH Secondary Poland

ExxonMobil USA
& backup EUROPE
Paradox Doe Canyon
Tumbleweed LACX
DB(K) Hugoton
Tenawa Arzew
Skikda
CHINA USA
Qatargas
ASIA
AFRICA Asia
Americas

US Helium One
SOUTH AMERICA Africa/Middle East/India

Darwin
Current supply AUSTRALIA
Renergen
Planned supply
Regional market
demand volumes
in boxes Source: Intelligas Consulting LLC estimates

Russia, which started up the second will constrain the delivery of helium the Ukraine war. Also, the volumes
half of 2023; the restart of Gazprom’s into those markets without sanctions going into China are already under
Amur plant in September this year with (ie., China and India) as most of the longer term contracts with some of
a nameplate capacity of 750 mmcf; an ISO container fleet is made up of the Tier 1 helium suppliers like Air
expansion of up to 300 mmcf/yr at the US-based Gardner Cryogenic ISOs. Products, Linde, and Air Liquide and
Arzew, Algeria plant (onstream was Those containers are included in Tier 2 suppliers such as Matheson and
originally expected in 2022); and 10 the US equipment list not allowed Messer. One or more of these suppliers
mmcf at Renergen, South Africa (over in the Russian Federation. Gardner may terminate their agreement with
two years behind the scheduled start). began producing the 11,000 gallon Gazprom. Finding replacement buyers
The 2.1 Bcf at the Russia Amur containers 50 years ago while Linde with many helium ISO containers to
project by Gazprom that was delayed Engineering began manufacturing ship Russian volumes into China or
following the two NG plant explosions helium ISO containers about 12 years other markets will likely hamper the
has once again started up the first of ago. “The limited availability of non-US ramp-up of production.
three helium plants. Gazprom started manufactured containers will limit the Qatar Petroleum announced the
helium shipments from the first process potential ISO fleet to deliver the Amur Qatar 4 project at the gasworld helium
train for this product at the Amur and Irkutsk helium product to market,” summit in December 2021 in Houston,
Gas Processing Plant on September 5. according to Phil Kornbluth, President TX. The new helium plant is planned to
Deputy CEO Vitaly Markelov said: “We of Kornbluth Helium Consulting. Also be onstream in 2027 with a nameplate
have launched one process train for “Gazprom has been actively soliciting capacity of 1.3 Bcf of helium. No other
helium production. The first batch of buyers for its helium in China and new large plants have been announced.
helium left the plant on September 5 to other countries not subject to US trade
the helium hub.” restrictions.” Worldwide helium supply now
The company also plans to launch Another reason for the probability Worldwide helium supply for 2023 is
two more process trains at the plant of a slow build-up in production is estimated at about 5.9 Bcf, as shown
early next year. Design capacity is for the extent of the repairs that had to be in Figure 2. Production is estimated to
six trains by 2025. made and access to equipment due to grow about 6% per year through 2030
The ongoing sanctions on Russia the international sanctions because of should Gazprom continue to ramp up

38 | gasworld US Edition • October 2023 gasworld.com

 SPECIAL FEATURE

Figure 1 Figure 2 Figure 3

2023 WW helium production 2030 WW helium production 2023 WW helium demand = 5.9 Bcf

2% 2% 1% 2%
4% 17%

35% 32%
1%
34%
6%

40% 52%

3% 10%
41%
15%
North America Russia North America Russia US North Pacific Rim
Qatar/MidE Australia Qatar/MidE Australia Other Americas South Pacific Rim
Africa Africa Europe
Poland Poland Afr/MidE/India

Source: Intelligas Consulting LLC estimates

Amur helium production methodically. helium begin to come onstream. The Growth over the past few years has
This rate of production outstrips the BLM disposal complicates this picture been fastest in balloons, electronics,
pace of global demand growth. Some as that volume is needed to keep up leak detection, airbags, and welding.
helium will need to be stored. with demand. Much of new supply will The space program in the US, including
North America, once the largest be absorbed by the global increase in NASA and SpaceX, saw increased
producer of helium globally, will shrink demand over that period, making up helium demand driven by a record
from 52% of supply to 35% of supply for demand not satisfied during the past number of launches. Once the current
by 2030. Qatar will increase slightly two shortages. economic conditions and supply issues
from 40% of supply to 41% of supply lighten, the US demand growth is
as Russia ramps up from 2% of supply Worldwide regional helium demand estimated at 2% per year as supplies
today to 17% of supply by 2030. and supply now allow.
We forecast that worldwide supply In the Americas (US, Canada, Mexico, Other Americas is estimated at 10%
will be short of demand until at least and Latin America), the US is the of worldwide helium demand with
2024/5, when new large sources of second-largest market for helium growth similar to the US. Helium
worldwide, after Asia, consuming about supply to Other Americas is from
32% of the total volume, or about 1.9 the US.
“Continued tight helium Bcf/yr, as shown in Figure 3. Asia represents the largest market
supply and rising Continued tight helium supply and for helium, with 36% of worldwide
rising prices driven by the ongoing demand. Where the US is a mature
prices driven by the helium supply disruptions have economy, many regions in Asia
caused helium demand to remain are also undergoing infrastructure
ongoing helium supply constrained. End-users seek cost- development.
effective solutions to the situation by In 2022, full-year statistics show
disruptions have caused employing conservation, substitution, China is the largest market in Asia
helium demand to recovery, and recycling, although most (39%), followed by South Korea (23%),
of what could be done in this area was Taiwan (19%), Japan (13%) and India
remain constrained” done over the past decade of shortages. (6%). First-half 2023 data appears to

October 2023 • gasworld US Edition | 39

SPECIAL FEATURE | 2023 WORLDWIDE HELIUM MARKET

show demand in Asia is down by over Demand growth is expected to be 1% to “The BLM system is in
2% and could worsen. 2% per year going forward, similar to
Asian demand growth going forward the US, once the economic conditions decline and is on track
is estimated to be 5% to 7% CAGR in the region improve following the
coming out of the economic downturn energy impacts of the Ukraine war. to produce 680 mmcf
with the exception of Japan. Japan is Helium applications are as saturated in 2023”
a more mature market where demand in Europe as they are in the US.
growth has been steady for the past few Currently, Qatar, Algeria, and the US did not come on until late 2023 (270
years and is expected to demonstrate are the primary suppliers to Europe, mmcf/yr), but it is clear Russian
this pattern in the future. Helium with some imports from the small sanctions could impact ramping up
demand in Asia is being driven by the Polish helium plant in Odolanow. The production as the non-US ISOs are
space program, significant investments backup imports from the US are seen critical as mentioned earlier. The
in MRI, and expanded electronics in the European Commission import Russian Amur far east project (2.1
manufacturing in semiconductor and statistics. However, Algeria via Europe Bcf/yr once fully loaded) has begun
fiber optics. also ships volumes of helium to the US. ramping up in September and could
Qatar and the US are the primary Rest of the World (ROW) – Africa/ put supply in surplus within a couple
suppliers of helium for Asia. Australia Middle East/India together represent years depending on the availability of
production tapered off in 2022 and 3% of the global market. These regions non-US ISOs. Helium demand could
ended in early 2023. The exports from traditionally have contributed to strong take longer to expand after the shortage
the US have been declining since Qatar demand growth from infrastructure depending on the global economic
1 and 2 began operations, and now development and are expected to conditions. The industry should plan
Qatar 3, and as the US BLM production grow moderately the next few years, as for the risk that tightness could extend
has dropped off. The cost to ship from supplies allow, at about 2.5% to 3.5% into 2024/25.
the US historically was lower due to per year. Supply to ROW is primarily
favorable distribution economics from from Qatar and Algeria, reflecting Prospects for North American supply
western US sourcing and fast container proximity. The BLM system is in decline and
shipping from Long Beach, California. is on track to produce 680 mmcf in
However, since the pandemic and Future worldwide helium supply 2023. There are also other crude plants
issues with container traffic on the East and demand supplying helium to process plants on
and West coasts of the US, container Future projections are based on the BLM pipeline such as Rock Creek
shipping rates from China to the US modeling by Intelligas of supply and (IACX), DCP Midstream, and Linn
increased, making Qatar helium more demand data and how helium markets Energy. Outside of the Hugoton in
favorable. As the new Russian Amur are expected to recover. the US, the largest helium production
supply comes on-stream, we can expect Our assessment of the 2023 source in the US is the ExxonMobil
to see exports from the US continue to worldwide market for helium sets plant in LaBarge, Wyoming, which is
decline due to the proximity of Russian demand at about 5.9 Bcf, back in the projected to produce 1.35 Bcf in 2023.
supply to the Asia market. range of 2021 levels prior to the severe Other smaller sources account for
Europe comprises about 19%, or 1.1 shortage that began in 2022. We can about an additional 675 mmcf of supply
Bcf, of worldwide helium demand. expect worldwide growth of around 3% and include Doe Canyon (AP), DBK
to 4% CAGR over the next five years, Helium, IACX, NTEC, Tumbleweed,
coming out of the global economic and recently Proton Green. Paradox
“Qatar and the US are situation and recovering suppressed resources has filed for bankruptcy
the primary suppliers demand given no major supply chain and the status of the plant is unknown
disruptions, keeping demand and currently. There are Canadian sources
of helium for Asia. supply in balance. 2024 is the earliest such as North American Helium listed
we project new sources will come below that contribute to this volume.
Australia production online to alleviate the current tightness. In the US and Canada there
tapered off in 2022 and Qatar 3 (400 mmcf/yr) was not continues to be a lot of activity in non-
sufficient to end the shortage. The hydrocarbon sourcing, especially as the
ended in early 2023” smaller Irkutsk Oil Company supply shortage has caused prices to increase.

40 | gasworld US Edition • October 2023 gasworld.com

GSA
SPECIAL FEATURE | 2023 WORLDWIDE HELIUM MARKET

These are smaller projects to recover “This year there were The world’s helium demand–supply
helium as the primary product from relationship is expected to return to
small gas fields in North America, with several newcomers balance and foster demand growth
higher concentrations of helium. Many beginning in 2024 as the Amur and
of these companies are actively seeking bringing supply on Irkutsk sources ramp up production.
capital to fund their exploration and between late 2023 and The uncertainty of access to non-US
production. ISO containers to move that supply
Companies like IACX, NTEC, North mid-2024” while US restrictions are in place points
American Helium, Thor Resources, and to a slower ramp-up in production.
Canadian Helium were among the first to begin producing helium. The status of the BLM Federal Helium
of the older investors to bring product Air Products first announced their System, split into two opportunities,
to market. This year there were several Arzew expansion projects in late 2018. depends on bids for the assets on
newcomers bringing supply on between Sonatrach will recover helium from two November 15 and buyer validation by
late 2023 and mid-2024. Among those existing liquefied natural gas (LNG) the DOJ following the sale.
newcomers are Proton Green from St. facilities, and deliver the gas to Helios’s The intensity of helium usage will
John’s field in AZ, Blue Star Helium plant in Arzew, increasing capacity for be greatest in Asia, barring any supply
in Colorado, New Era in NM in 2Q24, liquid helium. Air Products expected chain disruptions. Future demand for
Avanti Energy in Alberta in 4Q23, their expansion projects to on-stream helium will grow the fastest in China,
Royal Helium in Alberta in 3Q23, and soon. However, the expansion has where MRI infrastructure development,
First Helium in Alberta in 1Q24. There yet to produce increased supply from electronics, lifting, and space program
are many others still exploring and Algeria. usage will drive growth. Future demand
seeking investors to produce helium. The Linde and Renergen project to growth in the mature economies of
Most individual projects are small, in recover helium (20 mmcf) from natural North America, Europe, and Japan will
the 30 mmcf/yr and under range. gas in South Africa has also yet to come be slower, about 1% to 2% per year.
In April 2022 Linde signed a new on-stream. There are plans for a phase However, this could be higher with the
long-term helium off-take agreement II helium production to bring on 390 CHIP Acts being pursued to support
to recover the helium contained in mmcf/yr. No on-stream time has been semiconductor growth within the US
Freeport LNG’s production site in announced. and Europe. The uncertainty in future
Texas. Freeport LNG first proposed The Helium One project began economic conditions in all geographies
to construct, own, and operate a drilling its maiden well in June 2021 to will affect overall growth in helium
helium extraction and purification develop large scale helium production demand.
plant co-located at the existing from gas in Tanzania. In July 2022 it Supply reliability has come at a price
Pretreatment Facility in 2020. As part confirmed a notable helium gas show for end-users. The helium business is
of the agreement, Linde has been in the Tai-1 well, which is now being never short of uncertainties relating
constructing a new helium processing sidetracked due to an unspecified to demand destruction from tight
plant in Freeport to purify and liquify setback to the program in Tanzania. supply, reliability of helium sources,
the recovered helium, securing an the complicated supply chain, and the
additional source of liquid helium in Outlook timing and reliability of future supply
the US. The project is on track to start Intelligas estimates future worldwide sources beyond 2023. gw
up in 2024 and provide nearly 200 helium demand growth overall will be
million cubic feet of helium into Linde’s 3% to 4% over the next five years as
supply portfolio. the global economy recovers and new ABOUT THE AUTHOR
larger supplies come on-stream. The US Maura D. Garvey is President of Intelligas
Offshore supply needs new sources to be developed to Consulting LLC (and maintains a
As mentioned earlier, helium was avoid becoming an importer of helium working partnership with J. R. Campbell
shut down in Arzew is a result of to meet demand after 2030. Important & Associates, Inc.), an international
high natural-gas demand in Europe. geopolitical supply chain risks remain, consultancy specializing in strategic
Algeria normally compresses NG into including the Russian war in Ukraine, analysis and forecasting in the industrial
liquid form (LNG) at Arzew for global Middle East stability, and US–Chinese gas industry. She can be reached at
transport by ship and that plant has yet tariffs. [email protected].

42 | gasworld US Edition • October 2023 gasworld.com

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