US helium distributor calls force majeure after Qatar LNG attack

Airgas, a US distributor of packaged gases, has reportedly declared force majeure on helium shipments after Qatar suspended production at a major liquefied natural gas (LNG) facility following an Iranian attack.

Force majeure was declared on March 17, Bloomberg reported, quoting letters from the company.

Airgas is prioritising healthcare customers over other industries and expects to provide some clients with up to half of their normal monthly helium deliveries. The company will, however, add a surcharge of $13.50 per hundred cubic feet.

Qatar produces one-third of the world’s helium as a byproduct of natural gas extraction. Ras Laffan – the world’s largest LNG export hub, accounting for about 20 percent of global supply – was struck following an escalation of the US-Israeli war with Iran.

The shock affected about 17 percent of Qatar’s LNG export capacity, causing an estimated $20 billion in annual revenue losses and threatening supplies to Europe and Asia, QatarEnergy CEO Saad Al-Kaabi said.

Ras Laffan also supplies nearly 30 percent of UAE gas demand via its Dolphin pipeline, a joint venture between Mubadala, Occidental Petroleum and Total.

Sultan Al Jaber, UAE industry minister and managing director/group CEO of energy giant Adnoc, described Iran’s attacks as “global economic warfare”.

“Energy flows are being weaponised,” he said in a LinkedIn post.

Further reading:

• Qatar LNG halt sends helium prices higher
• Gulf cargo stuck as shipping calls ‘End of Voyage’ in Iran war
• Gulf aluminium producers feel the heat from Iran war