helium plants amid rift with Arab powers

The liquid helium plant operated by RasGas, a subsidiary of state-owned Qatar Petroleum were shut after Saudi Arabia closed its border with Qatar, blocking overland exports of the gas, a QP official told Reuters. RasGas is 70 percent owned by QP and U.S. giant Exxon Mobil has 30 percent.

The closure of the plants is a sign of how the rift between Qatar and Arab powers could affect commodities markets. Saudi Arabia, the United Arab Emirates, Egypt and Bahrain cut diplomatic and transport ties last week, accusing Qatar of supporting terrorism, a charge Doha denies.

But if the diplomatic dispute lasts a month or more, Kornbluth predicted there would be a global shortage and the last time that happened, prices doubled.

“Helium is the single commodity that is affected most by this blockade because it’s probably the only thing where Qatar is a major world producer and the supply has been completely cut off,” he said.

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