The war between the US-Israel alliance and Iran has dealt a direct blow to the production of industrial materials including helium, which is essential for semiconductor manufacturing. Concerns are mounting that the conflict could severely disrupt industrial supply chains.
According to Japan's Nikkei on the 5th, Qatar Energy, the state-owned energy company, declared force majeure the previous day, signaling its inability to fulfill existing contracts. The declaration follows the sudden shutdown of the Ras Laffan facility, Qatar's key liquefied natural gas processing plant, after an Iranian drone attack on the 2nd. Qatar Energy is the state-owned company that manages all LNG production in Qatar.
The force majeure covers byproducts and processed goods derived from natural gas. On the 3rd, Qatar Energy announced that "production of urea, polymers, methanol, aluminum, and other natural gas-derived products has also halted." Helium gas, a byproduct obtained during the pre-liquefaction treatment of natural gas, has also likely ceased production alongside LNG. Gasworld, an industrial gas trade publication, reported that "helium prices could rise by up to 50%" due to Qatar Energy's production halt.
Helium is essential for cooling silicon wafers in semiconductor manufacturing processes. Qatar Energy accounts for approximately 30% of global helium production, making it a critical supplier. This explains concerns that the disruption of Qatari helium supplies could damage the semiconductor industry. Nikkei noted that "as semiconductor production increases globally, demand is rising worldwide, and prolonged shipment disruptions could cause significant damage." Reuters, citing sources familiar with the matter, reported that Qatar's LNG production will take at least one month to fully normalize.
Beyond helium, polymers widely used in plastics and automotive parts, and methanol used as a raw material for synthetic resins and pharmaceuticals, could also face Qatar-related supply disruptions. Production of urea, used in diesel vehicle emissions treatment and fertilizers, is also expected to be affected. However, South Korea imports more than 60% of its urea solution from China. The so-called "urea solution crisis" of 2021 occurred because China accounted for nearly 90% of urea imports at the time.
