Qatar LNG halt sends helium prices higher

• Helium prices doubled in Iran conflict
• QatarEnergy halts LNG production
• Key industries to be prioritised

Disruptions to Qatar’s natural gas processing from the Iran war have driven helium prices sharply higher, exposing the fragility of a small but critical market that supports industries from semiconductors to medical imaging.

Helium spot prices have doubled since the Middle East crisis began, according to Phil Kornbluth, president of Kornbluth Helium Consulting, as buyers scramble to secure supply.

State energy giant QatarEnergy, the world’s second-largest LNG exporter, announced a production halt at its 77 million tons per annum (mtpa) facility last week and declared force majeure on LNG shipments, amid ​the conflict.

Force majeure allows commodity companies to suspend or cancel contracts when extraordinary events such as war, natural disasters or blockades make it impossible to fulfil them.

Because helium is extracted as a byproduct of natural gas processing, any disruption to LNG output directly cuts helium supply.

Qatari Energy Minister Saad al-Kaabi told the Financial Times last week that it would take “weeks to months” for deliveries to return to normal even if the conflict ended immediately.

Qatar is a pivotal supplier rather than a marginal one.

Data from the US Geological Survey shows the country produced about 63 million cubic metres of helium in 2025, out of roughly 190 million cubic metres globally, accounting for close to one-third of world supply.

“If those conditions (supply disruption) persist, the market is effectively missing about 5.2 million cubic metres of helium per month,” said Aleksandr Romanenko, CEO of market research firm IndexBox.

The disruption is reverberating through a market with little spare production capacity and limited storage, leaving buyers with few short-term alternatives.

Japan’s top helium supplier Iwatani said it had so far maintained stable supply to customers including semiconductor manufacturers, partly because it also sources helium from the United States and maintains stockpiles in both Japan and the US.

A market built on contracts

Helium markets operate very differently from most commodities.

Most supply is sold through long-term contracts rather than a transparent spot market, meaning price signals often emerge slowly even as supply tightens.

That opacity makes price discovery difficult, but signs of tightening supply have already begun to emerge.

“Early indications show about 50% spot price increases already,” said Anish Kapadia, CEO of market research firm AKAP Energy.

“In a sustained disruption, prices could rise sharply and potentially retest past shortage peaks of more than $2,000 per thousand cubic feet.”

Romanenko said a 30-day disruption could lift delivered helium prices by 10% to 20%, while a 60-to-90-day outage could push prices higher by 25% to 50%, particularly for buyers without long-term supply contracts.

Helium’s physical properties add another constraint. The gas is typically shipped in liquid form and gradually evaporates during transport.

“It’s a commodity, but it also has a shelf life,” said Chris Bakker, CEO of helium developer Avanti.

“So when you liquefy it, and that’s how they tend to ship it worldwide, you’ve got notionally 45 days to get it to the end-user.”

Criticial industries

If supply tightens further, suppliers typically prioritise key sectors when allocating volumes during force majeure events.

Kornbluth said industries such as medical MRI systems and rocket ships would probably get 100% of their needs, while semiconductor manufacturers might receive 95%.

Lower-priority uses, including welding, diving equipment and party balloons, would be likely to face deeper cuts.

Last week, South Korea’s ruling party lawmaker Kim Young-bae warned the US-Israeli war on Iran could disrupt supplies of key semiconductor manufacturing materials, giving helium as one example.

The hierarchy reflects helium’s role in technologies where substitutes are limited.

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Industrial gas companies sourcing helium from Qatar, including Air Liquide, Linde and Air Products and Chemicals, are among those most exposed to the supply shock, said Kapadia.

Air Products said it was taking steps to ensure continuity of supply but did not give further details.

Linde declined to comment, while Air Liquide said it relied on multiple sources in different continents and on its storage cavern in Europe.

Iwatani Japan is also exposed, Kornbluth and Bakker said.

Producers outside the region could benefit if disruptions persist.

Exxon Mobil is the largest helium producer outside Qatar, while Canada-based North American Helium and smaller developers such as Helix Exploration and Blue Star Helium could see stronger demand, Kapadia added.