The Helium Shortage of 2026: How the Gulf Crisis Hit World Supply

Why is there a helium shortage in 2026?

The helium shortage of 2026 is a supply shock rather than a surge in demand. Qatar produced an estimated 63 million cubic metres (m³) of helium in 2025, about a third of the world total of 190 million m³, according to the US Geological Survey (USGS) ^[1]. Its helium comes from Ras Laffan, the world's largest LNG export complex ^[4]. When the regional conflict that began on 28 February halted Qatari LNG output and disrupted shipping through the Strait of Hormuz, Qatari helium supply stopped with it ^[3,4].

Industry analysts have described the episode as "Helium Shortage 5.0", the fifth major supply crisis in two decades ^[3]. Unlike earlier shortages, it combines a production stoppage with a blocked export route and a bottleneck in the containers used to move the product ^[3].

How is helium produced?

Helium is a by-product of natural gas production. It is separated from the gas by cryogenic distillation ^[4]. In Qatar it is extracted during LNG processing, so helium output stops when the LNG plants stop ^[7].

Concentrations can be tiny. QatarEnergy LNG estimates that helium makes up about 0.04% of the North Field reservoir's contents ^[2]. Its first plant, Helium 1, produced its first liquid helium in August 2005 and reached its design capacity of 700 million standard cubic feet a year in 2008. Helium 2, which started up in the third quarter of 2013, has a capacity of 1.3 billion standard cubic feet a year; the company describes it as the world's largest helium plant ^[2].

Helium is shipped as a very cold liquid in insulated containers. These can hold it for 35 to 48 days before it warms, turns to gas and escapes through pressure-relief valves ^[4]. Stranded liquid therefore cannot be held back for later delivery ^[3].

Demand is broad. In the United States in 2025, analytical, laboratory and specialty gases took 22% of consumption; controlled atmospheres, fibre optics and semiconductors 17%; lifting gas 17%; and magnetic resonance imaging (MRI) 15% ^[1]. The USGS notes that helium has no substitute in the coldest cryogenic applications ^[1].

Where does the world's helium come from?

Supply is concentrated in a few countries. The USGS estimates for 2025 are ^[1]:

• United States: 81 million m³, with three underground storage sites in Texas.
• Qatar: 63 million m³, all linked to LNG production at Ras Laffan ^[4].
• Russia: 18 million m³; Gazprom's Amur plant is the largest Russian producer ^[10].
• Algeria: 11 million m³.
• Canada: 6 million m³; China and Poland: 3 million m³ each.

Two countries account for roughly three-quarters of world output ^[3]. ExxonMobil's LaBarge/Shute Creek system in Wyoming is the largest single source, with an estimated 20% of global supply ^[3]. The United States is a net exporter: in 2025 it exported an estimated 38 million m³ and imported 8 million m³. Between 2021 and 2024 its imports came mainly from Canada (47%), Qatar (28%) and Algeria (10%) ^[1]. The former Federal Helium Reserve near Amarillo, Texas, once a public buffer, is now privately owned by Messer ^[3].

Russia's role is limited. US and EU sanctions banning imports of Russian helium remained in force in 2025 ^[1]. On 14 April 2026 Russia introduced a temporary permit regime for helium exports outside the Eurasian Economic Union, valid until the end of 2027, to keep its domestic market supplied ^[9,10]. Reuters cited Gazprombank analysts putting Russia's share of world output at about 8% ^[10].

Why does Qatar matter so much for helium supply?

Because Qatari helium is a by-product of LNG, its supply depends on Ras Laffan running and on export routes staying open. We cover the gas side of the disruption in our analysis of LNG, gas prices and urea in 2026.

Qatari helium flows mainly to the large industrial gas companies. Helium 2's output is sold to Air Liquide (50%), Linde (30%) and Iwatani (20%), while Helium 1 supplies Linde and Air Liquide ^[2]. Exiger's review of shipment records found that Qatari helium is trucked overland through Saudi Arabia to Gulf export ports. Gulf loading countries accounted for over 90% of the helium shipments in its data ^[3]. That is why a disruption at Hormuz affects far more than Qatar's own plants.

Importers in Asia are the most exposed. South Korea sourced 64.7% of its helium from Qatar in 2025 ^[11]. Japan obtained nearly 40% of its imports from Qatar in 2025, with most of the rest coming from the United States ^[8].

What happened to Gulf helium output in 2026?

QatarEnergy halted LNG and associated production at Ras Laffan on 2 March after drone attacks and declared force majeure two days later ^[4]. Missile strikes on 18 and 19 March then damaged LNG Trains 4 and 6, with combined capacity of 12.8 million tonnes a year, about 17% of Qatar's LNG export capacity ^[5,6]. QatarEnergy's chief executive, Saad Sherida Al-Kaabi, said repairs would take three to five years. The company expects to lose 309.54 million cubic feet a year of helium exports, about 14% of the total, along with condensate, LPG, naphtha and sulphur ^[5,6].

The damage turned a temporary stoppage into a longer loss. Phil Kornbluth, president of Kornbluth Helium Consulting, said a return to some production within six weeks looked "highly unlikely" ^[4]. Trade data soon reflected the outage. Bloomberg, citing Japan's finance ministry, reported that Japanese imports of Qatari helium fell 81% year on year in March to 8,800 kg ^[8].

The restart has been slow and partial. QatarEnergy confirmed an internal explosion, attributed to a technical malfunction, during the restart of the Ras Laffan LNG facility on 21 June ^[12]. In August, gasworld reported that the complex was only partly operational, helium capacity was around 25% of normal and many cryogenic containers were still out of position ^[13]. In late September QatarEnergy extended LNG force majeure by another month. The National reported that Ras Laffan was running at reduced capacity and was being kept ready to raise output quickly if Hormuz reopens. Qatar had increased shipments through the strait in September, although flows remained far below pre-war levels ^[14]. We have not found a published estimate of Qatari helium output after August.

How did the helium market react?

Prices rose first in the small spot market. Kornbluth said spot prices had doubled since the crisis began. He noted that spot trading is only about 2% of the market in normal times and that most helium is sold under long-term contracts ^[4]. Exiger put European spot prices at around $450 per thousand cubic feet (Mcf) in March ^[3]. Anish Kapadia of AKAP Energy estimated that about 30% of Qatar's helium volumes could be lost in 2026, equal to 11% of global supply ^[7].

Suppliers moved to ration supply. Kapadia said some end users had received force majeure letters and some industrial gas companies were imposing surcharges. Airgas, a US distributor of packaged gases, reportedly declared force majeure on helium shipments ^[7]. Kornbluth expected MRI users and rocket makers to receive their full requirements and semiconductor makers about 95%, with deeper cuts for welding, diving and party balloons ^[15]. By June, the International Union of Marine Insurance (IUMI) reported that some chipmaking customers in South Korea and Taiwan were receiving only half of their normal volumes ^[11].

Logistics added to the strain. About 200 containers were stuck in the Middle East in March, each costing about $1 million, and Kornbluth expected repositioning them to be the worst phase of the shortage ^[4]. Exiger estimated that roughly one-third of the world's cryogenic helium ISO containers were stranded in or around Qatar ^[3].

Alternative supply has been limited. IUMI noted that the United States has no spare capacity large enough to replace Qatari volumes, and that Russia's export controls removed a possible offset ^[11]. Russian Prime Minister Mikhail Mishustin said in April that global helium supply had "decreased by almost a third" ^[9]. Among the gas companies, Air Liquide said it relies on several sources and a storage cavern in Europe. Iwatani said it had kept supply stable, partly by sourcing from the United States and holding stocks in Japan and the United States ^[15].

What to watch for helium supply

The first variable is a lasting reopening of Hormuz. Supply will lag any reopening, because Exiger estimates that repositioning containers will take at least three months after the conflict ends ^[3]. The second is Ras Laffan itself: even after a full restart, the damaged trains imply a loss of about 14% of Qatari helium exports for three to five years ^[5]. The third is Russian export permits under the regime that runs until the end of 2027 ^[9]. New supply will take time. Six new US helium operations began in 2025 ^[1], but the Dry Piney project in Wyoming, approved in December 2025, is not expected to start commercial operations until summer 2028 ^[3].

Alupetra does not trade helium; it follows the gas-market developments that affect helium supply from its Istanbul, London and Dubai offices.