Qatar closes helium plants

Qatar, the world’s second largest helium producer, has closed its two helium production plants because of the economic boycott imposed on it by other Arab states, industry sources told Reuters today.

The helium plants operated by RasGas, a subsidiary of state-owned Qatar Petroleum, were shut because Saudi Arabia closed its border with Qatar, blocking overland exports of the gas, a Qatar Petroleum official told Reuters.

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The official declined to be named. Phil Kornbluth, head of US-based industry consultants Kornbluth Helium Consulting, said his sources had confirmed the closure.

The two plants have a combined annual production capacity of approximately two billion standard cubic feet of liquid helium and can meet about 25 per cent of total world demand for the gas, according to RasGas’ website.

Saudi Arabia, the United Arab Emirates, Egypt and Bahrain cut diplomatic and transport ties with Qatar last week, accusing it of supporting terrorism, a charge which Doha denies.