The suspension of natural gas processing in Qatar due to the Iran conflict has triggered a sharp rise in helium prices, highlighting the fragility of this small but critical market that supports various industries from semiconductors to medical imaging. According to Phil Kornbluth, President of consulting firm Kornbluth Helium Consulting, spot helium prices have doubled since the Middle East crisis began, with buyers scrambling to secure supplies. Qatar's state-owned energy giant QatarEnergy announced last week the suspension of production at its 77 million-ton-per-year liquefied natural gas (LNG) facility and declared force majeure on LNG shipments. As the world's second-largest LNG exporter, any disruption in LNG production reduces helium supply since helium is a byproduct of natural gas processing. Qatar's Minister of State for Energy Affairs Saad al-Kaabi stated last week that even if the conflict ends immediately, it would take "weeks to months" for shipments to return to normal. Data from the U.S. Geological Survey shows that Qatar produced approximately 63 million cubic meters of helium in 2025, accounting for nearly one-third of the global output of about 190 million cubic meters. Aleksandr Romanenko, CEO of market research firm IndexBox, noted, "If the supply disruption persists, the market would effectively lose about 5.2 million cubic meters of helium per month." This interruption is set to have significant repercussions in a market with little spare capacity and limited storage, leaving buyers with few short-term alternatives.
The helium market operates differently from most commodities. The majority of its supply is sold through long-term contracts rather than transparent spot markets, meaning price signals typically emerge slowly even as supplies tighten. This opacity makes price discovery challenging, but signs of tightening supply are beginning to appear. Anish Kapadia, CEO of market research firm AKAP Energy, stated, "Initial indications suggest spot prices have already risen by about 50%. If the disruption continues, prices could spike sharply and potentially retest previous highs of over $2,000 per thousand cubic feet seen during past shortages." Romanenko indicated that a 30-day disruption could increase delivered helium prices by 10% to 20%, while a 60 to 90-day interruption might push prices up by 25% to 50%, particularly for buyers without long-term supply contracts. AKAP Energy warned that helium prices could exceed $2,000 per thousand cubic feet if the disruption persists.
Helium's physical properties add another constraint—the gas is typically transported in liquid form and gradually evaporates during transit. Chris Bakker, CEO of helium developer Avanti, explained, "It is a commodity, but it also has a storage window. Once you liquefy it—which is the common method for global transport—you theoretically have only 45 days to deliver it to the end-user."
Industry experts note that if helium supplies tighten further, suppliers would likely prioritize critical industries when allocating gas under force majeure. Kornbluth suggested that sectors such as medical MRI systems and rocketry might receive 100% of their requirements, while semiconductor manufacturers could secure about 95% of their supply. Lower-priority uses, including welding, diving equipment, and party balloons, could face more significant cuts. This rationing mechanism underscores helium's role as a critical production input in sectors where substitutes are scarce.
Last week, South Korean ruling party lawmaker Kim Young-pe warned that the U.S.-Israel conflict with Iran could disrupt supplies of key semiconductor manufacturing materials, citing helium as an example. Major Korean chipmakers like Samsung Electronics and SK Hynix have already conducted comprehensive checks on their helium inventories to mitigate risks. Industry sources in South Korea noted that finding alternative helium supplies in the short term would be challenging, with expensive U.S. natural gas emerging as a potential option. Iwatani Corporation, a major Japanese helium supplier, stated that it has so far maintained stable supplies to customers, including semiconductor manufacturers, partly due to its helium sourcing from the U.S. and inventories in both Japan and the U.S.
Kapadia indicated that industrial gas companies sourcing helium from Qatar, including L'Air Liquide SA, Linde PLC, and Air Products & Chemicals, are expected to be among the most affected by the supply shock. Air Products & Chemicals has stated it is taking measures to ensure continued supply but provided no further details. L'Air Liquide SA emphasized its reliance on diverse supply sources across different continents and its storage caverns in Europe. Additionally, Kornbluth noted that Japan's Iwatani Corporation also faces risks. Kapadia added that if the disruption continues, helium producers outside the Middle East could benefit. ExxonMobil is the largest helium producer outside Qatar, while Canada-based North American Helium and smaller developers like Helix Exploration and Blue Star Helium may see stronger demand.
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