Qatar attack, prices surge over 50%: One-third of the world's helium supply faces disruption

(Source: China Electric Power News)

From: China Electric Power News

Qatar was attacked, and prices surged by more than 50%: Global helium supplies are cut off for one-third of the world, the semiconductor industry faces an “asphyxiation” risk, and prices for phones, computers, and even MRI scans may rise

Global energy markets are currently “lurching from one shortage to another” — helium, the rare gas that is number two on the periodic table and familiar to many people, is facing a worldwide shortage.

On March 18, Qatar’s Ras Laffan Industrial City, the world’s largest LNG (liquefied natural gas) production base, was attacked. Helium is typically extracted from LNG, so its supply was consequently affected.

According to data from the U.S. Geological Survey, in 2025 Qatar’s annual helium production will reach 64 million cubic meters, accounting for more than one-third of the world’s total. This helium must be shipped to destinations around the globe through the Strait of Hormuz. Since the United States and Israel launched military strikes against Iran on February 28, the Strait of Hormuz has been blocked, and one-third of global helium faces supply disruptions.

Insiders said that as of March 29, spot helium transaction prices in some markets have already exceeded 118 yuan per cubic meter, up more than 50%.

If helium supply is disrupted, which industries will be affected? Will it spill over into ordinary people’s day-to-day lives?

Helium supports the operation of multiple emerging industries

On the industry side, helium supports the operation of multiple key emerging industries and is widely used in semiconductors, aerospace, electronics manufacturing, and medical imaging, among other sectors.

First is the semiconductor industry. According to statistics, the global semiconductor manufacturing industry’s demand for helium accounts for more than 30% of total helium demand. Helium is indispensable as carrier gas, shielding gas, and purge gas in core process steps such as chip lithography, etching, ion implantation, and vapor-phase deposition.

South Korea is the country most impacted by this helium shortage. The two major powerhouses in the global memory chip market, Samsung Electronics and SK hynix, have urgently launched inventory verification mechanisms. Their procurement departments check daily the supply status and price fluctuations of key materials to prevent production interruptions.

An analysis by the MSN website in the United States says that after disruptions to the helium supply chain, Nvidia may face pressure. Some analysts believe that if the Middle East’s supply experiences long-term interruption, the technology industry and investors related to artificial intelligence will also be severely affected.

In the aerospace and defense sector, helium also plays an irreplaceable key role.

In a paper, Li Zhongping, a researcher at the Oil and Gas Resources Research Center, Northwest Institute of Eco-Environment and Resources, Chinese Academy of Sciences, pointed out that helium has an extremely low density, about seven times lighter than air. It can provide strong buoyancy, allowing related equipment to rise into the sky and even enter space.

Helium is widely used in spacecraft gas-supply systems to ensure stable operation. In rockets and defense fields, helium is also used in critical links such as propulsion systems, making it an indispensable important medium.

Fushun Gan, executive vice chairman of the China Industrial Gases Industry Association, said in an interview with China News Service’s “Guoshi Zhitongche” program that among inert gases such as helium, neon, argon, krypton, xenon, and radon, helium is irreplaceable in many application scenarios, and therefore has important strategic and industrial value. A shortage of helium will lead to increases in domestic gas prices in the short term and in the prices of chemical products, while also increasing the pressure to ensure supply.

What impact will a helium shortage have on ordinary people?

For ordinary people, helium is commonly used to fill balloons, or is used to change voice frequencies after inhalation; in everyday life, only a small number of scenarios involve direct contact with helium.

However, because helium is closely tied to costs such as storage chips, a helium shortage will also bring direct impacts to ordinary people’s lives. For example, everyday electronic products such as phones and computers may face rising costs and price increases due to a helium shortage. Even idle old mobile phones and old computers at home may become more valuable as a result. Medical checkup costs may also rise accordingly.

In the medical field, taking MRI as an example, this technology requires a very strong magnetic field to obtain clear images. The key equipment that generates such a strong magnetic field is superconducting magnets. Superconducting magnets can only work properly in extremely low-temperature environments, so they typically require liquid helium for cooling.

In addition, mixing helium with oxygen can be used to treat wheezing and suffocation, and helps prevent “decompression sickness” that divers are prone to as they surface. Helium can also be used to dilute flammable anesthetics. In cancer treatment, helium is also applied to technologies such as argon-helium knives.

Procurement personnel for medical devices told China News Service’s “Guoshi Zhitongche” that an MRI machine typically consumes about 1,000 to 1,500 liters of liquid helium per year, with costs ranging from 200k to 450k yuan.

“Once the helium price rises significantly, equipment operating costs will increase substantially as well. This will not only add to the operational pressure on medical institutions, but may further transmit into checkup fees,” he said.

With helium in short supply, how much will it affect the domestic market?

Fushun Gan said that at present, China’s LNG (liquefied natural gas) inventories are sufficient, domestic production is steadily increasing, and the supply of pipeline natural gas from overseas is stable, laying a solid fundamental base support for the market. China has multiple buffering mechanisms and can, within a certain range, partially and temporarily offset external market shocks.

He also pointed out that, leveraging the Belt and Road Initiative, China is actively building diversified onshore energy import corridors. An energy import network covering both the Northeast and the Northwest has already been built, and the resilience of the supply system has been further enhanced. (Chen Haoxing)

Responsible editor: Yang Na