Russia will clash with the US on the helium gas market

The demand for helium is much lower than that of methane, which is the primary component of natural gas. Helium supplies are measured in millions, not billions of cubic meters. However, the market for this scarce gas is also experiencing significant changes, with the same players involved, including Qatar. Russia is also striving to take the lead. The development of the recently built Amur Gas Processing Plant is an example of how the company is increasing its capacity. This plant is a global enterprise in both the natural gas and helium industries.
It is important to note that helium is a rare atmospheric gas. It is colourless, odourless, tasteless, non-toxic, non-flammable and only slightly soluble in water. Gases with these properties are classified as noble gases.
The concentration of helium in the atmosphere is 5.24 × 10-4% by volume. Helium has the lowest boiling and melting points of all elements, making it difficult to obtain in liquid or solid form.

Although not as widely known as its liquefaction temperature, helium is used in many applications. One common use is inflating balloons, either at the time of sale or in advance. In addition, it has a wide range of commercial applications.

It can be found in light bulbs, semiconductors, lasers, cryogenics, medical technology, and nuclear reactors. Furthermore, it is increasingly in demand on the global market.
Recently, a positive message surfaced suggesting that Russia could substantially boost its helium supplies in the near future, potentially claiming a significant portion of the market. With all planned projects considered, Russia's helium production could reach 75 million cubic meters by 2030 and maintain this level until the mid-21st century. According to the forecast of helium production in Russia by scientists from the Center for Economics of Subsoil Use of Oil and Gas at the Institute of Petroleum Geology and Geophysics, which is the Siberian Branch of the Russian Academy of Sciences, this was reported by the magzine Monocle.
According to INGG specialists, helium from Eastern Siberia and the Far East will meet up to 45% of global demand. The primary consumers will be countries in the Asia-Pacific region.
Scientists have noted that Russia's potential for helium production is concentrated in Eastern Siberia and the Far East, where 35 gas fields containing helium have been discovered. However, due to their large resource and territorial remoteness, significant investments are required for both development and exploitation.

According to the INGG report, it is essential to develop domestic technologies and equipment for separating, purifying, and liquefying helium, as well as creating systems for its long-term storage. The report quotes Irina Provornaya, a senior researcher at the Center for the Economics of Subsoil Use of Oil and Gas, who holds a Ph.D. and is an associate professor. “Simultaneously, the overall technological readiness of Russian equipment manufacturers enables us to supply projects with critical and essential equipment.”

New helium production enterprises are gradually emerging in Russia. Until 2021, the Orenburg Helium Plant was the only operational plant in Russia. However, the Amur Gas Processing Plant (GPP) was subsequently launched near the city of Svobodny in the Amur Region. The first production line was launched in June 2021. Additionally, a helium plant was launched at the Yaraktinskoye field in the Irkutsk Region. There are plans to launch a helium plant at the Markovskoye field in the Irkutsk region, produce helium at the Minnibaevsky gas processing plant in the Republic of Tatarstan, and extract helium at the Srednebotuobinskoye field in the Republic of Sakha (Yakutia).

In 2023, Russia produced 8 million cubic meters of the gas, making use of the capacity of the Orenburg Helium Plant, the oldest helium production site in the country, according to the USGS. With the increase in capacity utilization of the Amur GPP, Russia will surpass Algeria, which was the third-largest helium producer in 2023, with 10 million cubic meters.
At the end of January, the Gazprom Management Board received information on the development of projects for the production and sale of helium and other noble gases. The Board decided to submit this information for consideration by the Board of Directors.

It was observed that the Russian Federation is one of the world's leading countries in terms of helium reserves. The country's large-scale production is mainly provided by two Gazprom enterprises: the Orenburg Helium Plant and the Amur Gas Processing Plant (GPP), which is part of the Power of Siberia project. The Amur Gas Processing Plant has a design capacity of processing 42 billion cubic meters of natural gas per year and is now the world's largest helium producer.
According to Gazprom, the plant will produce 60 million cubic meters of gas per year once it reaches full capacity. In 2023, two helium units of the plant were brought to full operation without the participation of a Western licensor. Currently, the plant is constructing a third unit.

Additionally, a unique membrane installation for the extraction of helium concentrate was built at the Chayandinskoye field in Yakutia. The purpose of this process is to retain the necessary amount of helium in the gas sent to the Power of Siberia gas pipeline, while separating the excess helium at the Amur Gas Processing Plant for distribution to consumers. The purpose of this process is to retain the necessary amount of helium in the gas sent to the Power of Siberia gas pipeline, while separating the excess helium at the Amur Gas Processing Plant for distribution to consumers. Any remaining helium concentrate is stored in the deposit's layers for future use.

As of September 2023, over 470 tons of liquid helium have been shipped to both Russian and foreign consumers in 110 iso-containers from the Amur Gas Processing Plant.

Additionally, the company has attracted several manufacturers to organize mass production of insulated containers.
The market is growing, but it is not a bubble.
Currently, the world requires 170 million cubic meters of gel per year. Expert Market Research (EMR) predicts a Compound Annual Growth Rate (CAGR) of 3.6% for the noble gas market between 2024 and 2032.

According to the US Geological Survey (USGS), global helium production increased by 8% last year, reaching 170 million m3. More than 80% of this growth occurred in Qatar and Russia, which increased the total helium production by 10 million m3. More than 80% of this growth occurred in Qatar and Russia, which increased the total helium production by 10 million m3. More than 80% of this growth occurred in Qatar and Russia, which increased the total helium production by 10 million m3.

The primary markets for helium are expected to be North America, Europe, and Asia-Pacific. Experts predict that the helium market will experience growth due to increasing demand from the healthcare industry. Helium is used in various medical applications, such as adjunctive therapy for exacerbation of asthma, ARDS, croup, COPD, and bronchiolitis.

Additionally, helium is a crucial component in the production of fiber optics, which are vital to the adoption of 5G technology. This is expected to catalyze the development of the helium market in 2024. Helium is used in the initial stage of optical fibre production. This involves creating a precursor for the fibre, specifically for fibre reinforcement, and in the process of stretching preforms to produce optical fibre for efficient cooling.

Global Energy states that the United States is the primary player in the global helium market, accounting for 46% of the total supply of this gas. The US supplies 79 million m3 of helium, including 60 million m3 extracted from natural gas and 19 million m3 from the Cliffside storage facility in North Texas. However, in recent years, the volume of helium shipments from this storage facility has been decreasing. It has dropped to the current level from 49 million m3 in 2013, which means it has fallen by two and a half times in 10 years.

Qatar has gradually filled the vacated niche and increased helium production from 25 million m3 in 2013 to 45 million m3 in 2018 and 66 million m3 in 2023. Qatar has three helium production sites operated by Qatargas, with a combined annual production capacity of 72.8 million m3. Helium-1 was commissioned in 2005, Helium-2 in 2013, and Helium-3 in 2021.

The newly installed capacity replaces the discontinued supply from the Cliffside storage facility and meets the growing demand for helium in healthcare, space aeronautics, and microelectronics. Helium is used for cooling magnetic resonance imaging equipment, which has seen a surge in demand during the COVID-19 pandemic. It is also used in the production of smartphones, which have experienced a 40% increase in global sales from 2013-2023 (from 970 million to 1.34 billion units). Qatar is currently the world's leading producer of helium, after deducting supplies from Cliffside storage.
Yaroslav Ostrovsky, a specialist in the strategic research department at Total Research, is confident that Russia's plan to increase helium production to 75 million cubic meters is feasible. This will allow for the supply of domestic gas needs and export of helium, meeting 40% of global demand. It is worth noting that Russia holds about a third of the world's helium reserves.

At present, the world consumes approximately 170 million cubic meters of helium per year, with an estimated annual growth rate of 3-7%. According to Russian research on thermonuclear fusion, helium-3, an isotope of helium, will be the fuel for future reactors, making helium a strategic commodity.