Due to the ongoing conflict in the Middle East, there is a shortage of gas for which there is no alternative. This is the same gas that is known to keep party balloons floating in the air. However, what you may not know is how this gas actually drives the global economy. That gas is helium, and the war involving Iran has caused a worldwide crisis over its supply. This gas is colorless and odorless. It is used in computer chips that run artificial intelligence (AI), and in life-saving MRI machines in hospitals.
Why is helium so special?
After hydrogen, helium is the second most abundant element found in the universe. However, it is found in very limited quantities on Earth. During the production of liquefied natural gas (LNG), helium is separated from methane, nitrogen and other gases by the process of ‘cryogenic distillation’; After this it is sent from one place to another in the form of a ‘supercooled liquid’. Its most important feature is its functioning as a “cooling agent”.
**Semiconductor Industry** – Helium is essential for keeping “wafers” cool during the manufacturing of computer chips. It is used to maintain temperature stability during the ‘etching’ process. According to experts, currently no practical alternative to helium exists.
**Medical field** – In hospitals, helium is used to cool the ‘superconducting magnets’ inside MRI machines.
**Space Industry** – Helium is also in huge demand to clean and purge rocket fuel tanks.
Why did this crisis arise?
Qatar alone accounts for about 30% of the total worldwide helium supply. Recently, the halt in production at Qatar’s ‘Ras Laffan’ plant has created panic in the global market. This plant is the world’s largest liquefied natural gas (LNG) plant.
The biggest challenge is posed by Iran’s control over the ‘Strait of Hormuz’. Due to the conflict, hundreds of containers filled with helium remain stranded in the Gulf waters. Helium can be stored in liquid form for only 35 to 48 days; After that, it evaporates and dissolves in the air in the form of gas. As a result, any delay in transportation means wastage of this precious gas.
What effect will this have on the market?
Experts believe that if this shortage of helium continues, it could lead to a huge decline in the production of smartphones, automobiles and AI devices. Due to sanctions imposed on Russia, supplies from that region are not currently available; As a result, the world now looks to the United States—the largest producer of helium—to meet its needs.