Artemis II launch coincides with rising helium supply uncertainty

When the world watches on in awe at NASA’s Artemis II launch mission in Florida tonight (6.24pm EDT, 11.24pm UK time), it is unlikely that most observers will be thinking of Qatar’s Ras Laffan plants half a world away.

But with the Middle East crisis disrupting around 30% of global supply due to halted LNG production in the Gulf state, the space industry faces an uncertain future.

Helium is vital for launch operations, particularly for cooling and purging fuel systems. It is estimated that $1m-worth of helium will be consumed by tonight’s launch.

NASA sources most of its helium from private, commercial suppliers that extract it from underground natural gas deposits, primarily located in the US. The ties are strong with US-based Air Products; in November 2022, NASA selected Air Products to supply 33 million litres of liquid helium to the Kennedy Space Center under a contract potentially worth $1.07bn, and the industrial gases major has also delivered its largest supply of hydrogen to NASA.

But as global supplies tighten, US aerospace firms may face significantly higher procurement costs and potential launch delays to manage critical inventory. Shortages could slow the cadence of launches for companies like SpaceX and Blue Origin, which have both increased their launch frequency.

With around 200 specialist helium containers currently stuck in Qatar, physical transport constraints are exacerbating global scarcity.

Spot prices for helium have doubled following the crisis, with weekly increases reported at 35 to 50%. Long-term contract prices are expected to rise.

While it is deemed a critical sector, the space industry must compete for supply with the semiconductor sector. The 45-day buffer of liquid helium inventory means effects are lagging, but a 60-to-90 day conflict would trigger major disruptions.

The constraints have caused a silent bottleneck on hi-tech sectors, with experts noting the crisis threatens to disrupt space exploration missions and delay launches.

The conflict also highlights the risks of a concentrated global supply chain, and will force US aerospace companies to seek alternative sources and manage inventories tightly.

Aerospace-grade helium demand is rising due to increased rocket launches, satellite deployment, and reusable launch vehicles, requiring ultra-high purity gas.

To ensure long-term sustainability, the industry is increasingly focusing on non-traditional sources and investing heavily in recovery systems. Recycling technologies can reduce consumption by up to 80%.