Iranian Strikes on Qatari LNG Threaten Global Helium Supply Chains and Lead to Rationing Plans

 

     Recent missile and/or drone strikes in March by Iran on Qatari LNG infrastructure have taken about 17% of its LNG offline and it could take up to 3-5 years for repairs. The massive gas field, known as North Field, is basically the northern part of Iran’s South Pars gas field, or vice versa. It is one big field. The Qatari side also produces large amounts of helium from the field, and Qatar produces a third of the world’s helium. This means that global helium supplies are about to become constrained, perhaps very constrained. However, just minutes ago, as I type, a cease-fire has been announced, with one of the terms resuming shipping through the Strait of Hormuz. Hopefully, peace and commerce will prevail and chances for a better government in Iran. However, there is no guarantee.  

     A March 19 article in Reuters summarizes the issue:

     “The fallout extends well beyond LNG. Qatar's exports of condensate will drop by ​around 24%, while liquefied petroleum gas (LPG) will fall 13%. Helium output will fall 14%, and naphtha and ​sulphur will both drop ⁠by 6%.”

    The lost LNG production is expected to impact exports to Italy, Belgium, South Korea, and China. Annual revenue could drop by 20 billion.  I found the following quote concerning, as it underscores the damage done:

 “The scale of the damage from the attacks has set the region back 10 ​to 20 years, he said.”

     Helium is used in multiple stages of semiconductor production, cooling, many medical technologies, energy technologies, and much more. Since the bombing, countries have begun strategizing, managing stockpiles, and shifting shipping routes to keep supplies available. However, some shortages are expected. Helium prices have risen by 50 to 100%.

"Data from the U.S. Geological Survey shows the country produced about 63 million cubic meters of helium in 2025, out of roughly 190 million cubic meters globally, accounting for close to one-third of the world's supply."

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

     It is likely that Qatari gas production, including helium production, will be suppressed for at least a few years. I wonder if U.S. helium drilling will pick up pace. Several new and existing fields are being tested and developed. That development could accelerate. Qatari helium is produced with natural gas. One might consider it a byproduct of more voluminous, thus more valuable, natural gas. In other fields, it is produced without or with much lower amounts of natural gas. In the case of Qatar, if natural gas production drops, so does helium production.

     An article in The Conversation describes the particular challenges of storing and transporting helium:

“Exporting helium is not simple. It requires highly specialised cryogenic containers to keep it extremely cold during transport. These shipments must pass through narrow trade routes such as the Strait of Hormuz, making the supply chain vulnerable to political conflict.”

“The specialised containers are insulated, but not refrigerated. This means that, due to the physical properties of helium, the element will escape from the containers over time.”

     Below, the article gives some strategies for managing helium supply.

References:

 

Iran war deflates critical helium production supplies. Avery Lotz. Axios AI+. April 7, 2026. Iran war deflates critical helium production supplies

Exclusive: Iran attacks wipe out 17% of Qatar’s LNG capacity for up to five years, QatarEnergy CEO says. Maha El Dahan, Andrew Mills, and Yousef Saba. Reuters. March 20, 2026. Exclusive: Iran attacks wipe out 17% of Qatar’s LNG capacity for up to five years, QatarEnergy CEO says | Reuters

The world’s supply of helium is being threatened by the Iran war. Gavin D. J. Harper. The Conversation. April 2, 2026. The world’s supply of helium is being threatened by the Iran war

Helium Production by Country 2026. World Population Review. Helium Production by Country 2026

Helium prices soar as Qatar LNG halt exposes fragile supply chain: Helium spot prices have doubled since ⁠the Middle East crisis began. Arunima Kumar. Reuters News. March 12, 2026. Helium prices soar as Qatar LNG halt exposes fragile supply chain