LNG and helium producer Renergen believes coronavirus may boost demand for helium in the medium term as hospitals prepare for future pandemics by expanding facilities that use the gas.
The South African company says this, coupled with the decreasing supply from the Bureau of Land Management (BLM), will put “significant pressure” on the supply dynamics of helium for the foreseeable future.
“The global macro-economic picture is changing and has seen [the] helium market remain in tight supply. With a prolonged depressed oil price further exacerbating this position, [this] will most likely have an impact on future large scale LNG and helium projects from a financing perspective by delaying the much needed critical investment decisions,” Renergen explained.
“Demand at this stage is not expected to fall in line with the reduced supply shortages. In the medium term we believe many nations will respond to the current pandemic by increasing preparedness against future pandemics with additional medical facilities.”
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