Industry experts are calling for Australia to develop its helium resources after conflict in the Middle East disrupted global supplies.
This shift is critical because helium is essential for microchip and semiconductor manufacturing. A shortage of the gas could destabilize the production of AI hardware and other high-tech components used worldwide.
The current crisis stems from the ongoing Middle East conflict, which has severely impacted production at Qatar’s Ras Laffan gas plant. Iranian missile strikes hit the facility in March 2024 [3], leading to a significant drop in output. These disruptions have effectively cut off approximately one-third of the global helium supply [1].
Market reactions have been immediate. Helium spot prices have doubled since the Iranian missile strikes occurred [2]. While some analysts suggest this price spike provides a short-term boost for producers [5], others warn that the scarcity could cripple the global chip industry [4].
In response to these vulnerabilities, experts including Arup George of the University of New South Wales (UNSW) said Australia is well-positioned to fill the gap. By extracting its own helium gas, Australia could transform from a traditional energy exporter into a strategic player in the semiconductor supply chain.
Developing these resources would reduce global reliance on a single volatile region. However, the transition requires significant infrastructure investment to move from potential extraction sites to active commercial supply.
“Approximately one-third of the global helium supply is threatened by the conflict”
The reliance on a concentrated geographical area for helium creates a single point of failure for the global AI economy. As semiconductor fabrication requires ultra-cold environments provided by helium, diversifying the source of the gas to stable regions like Australia is a matter of national security for tech-dependent economies.
