Industry Forced to Allocate as Helium Supply Tightens

Helium supply has become tight in the last few months, and major suppliers are expressing concern as supply dwindles in the location where it is most abundant: the U.S. “Companies have put customers on 70%–80% allocation because of problems with pipeline infrastructure. Also, less natural gas is going into processing,” says Bala Suresh, senior consultant with IHS Chemical. Helium is a coproduct of natural gas production. “The amount of helium that can be purified is also down. As long as the pipeline has mechanical problems, the allocation is going to...

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