Growing AI need is raising demand for heliumSupply remains constrained due to the Middle East conflictExisting stockpiles and new resources are increasingly valuable
Helium is an irreplaceable noble gas that is essential for semiconductor manufacturing, nuclear energy production, solar panels, fibre optic and the cooling of superconducting magnets in MRI scanning machines.
Despite its relative abundance in the universe, the second lightest element is famously rare on Earth due to its tendency to escape into space.
Any helium found on Earth is typically trapped in rocks deep underground, often in the same traps where natural gas collects.
Most helium is produced as a byproduct of natural gas and liquefied natural gas production with Qatar accounting for close to a third of the estimated global supply of 190 million cubic metres in 2025.
This has caused no end of supply angst as the ongoing Middle East conflict continues to severely constrain exports through the Strait of Hormuz.
It certainly doesn’t help that China, already a major importer of helium, has moved to place controls on what little that it actually exports to preserve domestic supply.
All this has made existing reserves of helium as well as new sources of the gas increasingly valuable as demand climbs.
Highlighting this, Bloomberg quoted TD Economics economist Mauri Hall as saying that Canada’s helium reserves could become increasingly valuable.
He noted the Middle East helium disruptions gave Canada, or more specifically Saskatchewan and Alberta, an opportunity to expand helium production and boost the country’s global footprint.
This could fuel the needs of the growing semiconductor sector where demand has exploded to meet the requirements of the artificial intelligence boom.
Helium is, after all, required in the manufacture of the truckloads of advanced semiconductors required by the data centres powering AI.
While AKAP Energy had estimated back in 2024 that helium demand could increase from 167Bcm in 2023 to 240Bcm in 2030, this might not account for the full impact of the demand boost from the AI revolution. The growing demand for helium is a huge positive for ASX companies operating in the space.
**Blue Star Helium (ASX:BNL)**
**Blue Star Helium (ASX:BNL)**
Blue Star is already positioned to benefit immediately from the strong demand for the rare gas, given it has been producing helium from the Galactica project in Colorado since late December 2025.
While the first sale was only made in July 2026 under a fixed price offtake agreement, a third tube trailer of helium has already been delivered and negotiations are underway for longer-term arrangements. Helium goes for between US$350 and US$600 per thousand cubic feet, some two orders of magnitude higher than what natural gas (methane) goes for.
The company is producing helium from six wells, which feed into the Pinon Canyon plant for processing.
Three more Galactica wells will be added in 2026 with a further six wells expected to join in 2027.
Further production could come from the Pegasus project, which already has a discovered resource and is awaiting appraisal and development drilling.
A second production plant is planned, with first production wells expected in 2027.
In the longer run, Blue Star could construct up to four plants to fully develop the existing resource contained within its combined Galactica-Pegasus fields.
More helium could come from the Voyager and Serenity fields, which both have discovered resources, as well as the rest of the company’s large lease portfolio in Las Animas County.
Blue Star plans to carry out more exploration drilling to further grow reserves and assess potential farm-in partners to accelerate exploration, share risk and conserve capital.
**Constellation Resources (ASX:CR1)**
**Constellation Resources (ASX:CR1)**
Over in Western Australia, Constellation holds nine Special Prospecting Authorities with an Acreage Option in the Edmund-Collier, Yerrida and Ashburton basins.
The SPA-AOs are intersected by the Goldfields Gas Pipeline and are in close proximity to a number of major consumers, including iron ore mines that are investigating pathways for onsite green power and steel production.
Repeated sampling of the historical WHRD021 hole in SPA-0143 within the Edmund-Collier basin confirmed that methane and helium with values of up to 97% and 0.24% respectively were being vented continuously.
While natural gas was undoubtedly the main goal of securing the SPA-AOs, the discovery of valuable helium warrants further exploration.
**Noble Helium (ASX:NHE)**
**Noble Helium (ASX:NHE)**
Noble Helium’s flagship North Rukwa project in southwest Tanzania consists of 12 granted prospecting licences covering 1467km2.
Testing of its Mbelele-1 well has returned high helium concentrations of up to 2.46%.
Recent reprocessing of 3D seismic over the Kinambo target significantly improved previously unrefined imaging of the deeper sections.
The improved imaging combined with additional data resulted in the repositioning of Kinambo-1 to better target the crest of the shallower levels.
Work on the Kinambo site is nearing completion ahead of drilling the Kinambo-1 and Kinambo-2 wells.
**D3 Energy (ASX:D3E)**
**D3 Energy (ASX:D3E)**
D3 Energy holds six permit areas totalling 478,699 acres in South Africa’s Free State.
Production testing has already yielded proved and probable (2P) reserve of 10.91 billion cubic feet of methane and 706 million cubic feet of helium, as well as a certified best estimate (2C) contingent resource of 462.16Bcf methane and 21.63Bcf helium.
In August 2026, the company drilled NGT245 D in the ER315 permit to a total depth of 348m on time and budget.
It also installed production casing at the first well, NGT245 E, in the program.
Both holes will be further evaluated and tested once the production casing has been installed.
Combined best estimate contingent resources across the ER315, PR016 and ER386 permits stand at 35.6 billion cubic feet of helium.
**Gold Hydrogen (ASX:GHY)**
**Gold Hydrogen (ASX:GHY)**
Gold Hydrogen operates the Ramsay project in South Australia’s Yorke Peninsula, where exploration has proved the presence of both hydrogen and helium at high levels of purity.
In July 2026, the company successfully separated helium from the gas flow at the Ramsay-1 well before concentrating the gas with the Quantum system and bottling it.
Flow testing also confirmed the well had tapped an exceptionally productive reservoir that is capable of producing up to ~128,000 standard cubic feet of raw gas per day and up to 24,300scf/day of helium.
This granted operational experience and equipment confidence before it moved on to start flow testing at the Ramsay-2 well on August 11.
Flow results from Ramsay-1, 2 and 3 will be combined with the independent Worley assessment to book the maiden contingent resource.
At Stockhead, we tell it like it is. While Blue Star Helium is a Stockhead advertiser, it did not sponsor this article.
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