TEHRAN – Iran on Wednesday launched a pilot project for extracting and purifying helium from natural gas for the first time, with head of the Atomic Energy Organization of Iran (AEOI) Muhammad Eslami hailing it a “strategic step”.
He attributed the project’s success to the efforts of Iranian specialists, following which Iran will establish its first helium production plant, officially joining the ranks of countries that purify helium from natural gas.
“This is a very joyous day, and I thank Almighty God for the valuable efforts of our colleagues and the support team who played a role in the series of activities of the organization, during which we were able to unveil the pilot project to extract and purify helium from natural gas for the first time,” Eslami said.
Helium is an inert gas, colorless and odorless, and it does not burn or react with other elements, making it ideal for many industrial applications. It is a non-renewable natural resource that is most commonly recovered from natural gas deposits.  
Aside from filling party balloons, helium is used in scientific research, specialized welding equipment, leak detection, medical technology, high-tech manufacturing, space exploration and defense.
Eslami said the technical knowledge for the project was developed in collaboration with an Iranian university, with all necessary components and equipment manufactured by the AEOI and supplied through the country’s domestic engineering network.
The capacity being created will meet Iran’s annual demand, eliminating the need for helium gas imports, the official said, adding the Islamic Republic will also plan for exports in the future.
According to the deputy head of the AEOI, the initial and basic design of the project, with a capacity of 22 tonnes per year, has been completed.
Due to a stated lack of technology and foreign investments amid Western sanctions, Iran lost out on an opportunity to play a role in the global helium business that opened up in 2017, when Saudi Arabia and the UAE cut off diplomatic relations with Qatar. 
That year - and months before the United States reimposed sanctions on Iran - Qatar blocked its helium land export routes to Fujairah. However, Iran failed to use that opportunity to seize a portion of this multi-billion-dollar global business. 
Instead, it continued to import its helium, while sitting on probably the third-largest helium reserves in the world.
The largest deposits of helium are located in the United States, Qatar, Iran and Russia. In Qatar, the North Dome gas field has 0.04% of helium in its gas. This may seem like a small percentage, but considering the size of the field and its large gas production rates, it provides sizable helium reserves.  
As Iran’s South Pars is a shared reservoir with Qatar, Iran could also benefit commercially from its large helium reserves. 
Since helium is an inert gas and does not burn, its removal from the natural gas production stream also improves the calorific value of the pipeline gas.
For decades, the United States was the main producer and supplier of helium in the world. In recent years, Qatar has accelerated its helium production and is now providing 60 million cubic meters per year, equivalent to 38% of global helium demand. 
At the current wholesale prices of helium, this amounts to around $1 billion per year of revenue for Qatar from a shared reservoir with Iran. 
Qatar is expecting the global helium demand to increase by 40-50% by 2030, and is trying to capture a larger share of this global business.