Cover Story Breakbulk & Project Cargo
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There are big differences between Qatar’ s massive output and the potential output of new primary startups. There are as many as 60 helium exploration companies around the world, most of which had not been doing well during a period of oversupply, with prices and investor interest declining, said Kornbluth.
“ This whole situation has provided a shot of adrenaline for the exploration companies,” he said.“ However, an event like this doesn’ t enable someone to drastically accelerate their progress toward production.
“ A handful of small producers are just reaching first production,” Kornbluth added.“ A typical small-scale plant produces 1 % of what Qatar does; that is 0.3 % of global supply. They can make good money if they can produce reliably, but they are not having significant impact on the balance between supply and demand.”
Higher E & P costs
Primary helium projects face a fundamental economic hurdle. Unlike LNG-linked helium, which is essentially“ free” once natural gas is processed, standalone helium must cover the full costs of exploration, drilling, pipelines and processing facilities.
On the plus side, these projects are relatively small and do not require flaring. Even so, timelines remain challenging. Modest developments typically need around 12 months for permitting and fabrication, with Pulsar’ s Minnesota project still at least a year from first production.
Canusa EPC, which designs and delivers helium processing facilities, was awarded in March a CO 2 and helium EPC project for US Energy Corp. in Montana. Speaking to the Journal of Commerce, Forrest Churchill, Canusa’ s principal for project development, warned against assuming that supply can be scaled quickly.
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“ What’ s happening in the Strait of Hormuz is developing far faster than industrial projects can respond,” he said. New equipment typically takes nine months from order to delivery, and any new capacity would not be in production for at least 12 months, Churchill said. Rental plants could shorten timelines, but offer lower margins and limited throughput.
“ What’ s happening in the Strait of Hormuz is developing far faster than industrial projects can respond.”
For long-distance deliveries, liquefaction is necessary, but a liquefaction plant would take three years to build, he said. Most facilities in the US use pressurized tube trailers to deliver, but that limits distance.
“ Helium will always find a way out,” Churchill said.“ In that high-pressure gas state, the leakage rate limits transport to where you can drive in one to two weeks.”
Churchill expects to see incremental capacity additions— small to midscale plants capturing local markets and signing direct supply contracts with end-users, bypassing the majors. He noted that developing new helium projects can be challenging because they are often located in areas without existing infrastructure or services, having no links to historic oil and gas production.
“ Developers have to consider,‘ How am I going to build it, staff it?’ There is likely no local knowledge,” he said.
email: felicity @ felicitylandon. com
June 2026 | Journal of Commerce 9