AIM-listed Helium One Global, the primary helium explorer in Tanzania with a 50% working interest in the Galactica-Pegasus helium development project in Colorado, USA, has provided an update following the Blue Star Helium announcement issued today regarding the Galactica Project.
Operator Reported Highlights
- The Operator has entered an initial short-term (3 month) helium offtake agreement (the "Agreement") with a major US industrial gases purchaser, covering early production output from the Pinon Canyon Plant
- Pricing is firm for the duration of the Agreement and reflects current US spot markets
- The short-term Agreement establishes commercial cash flow potential whilst comprehensive long-term offtake negotiations continue
- Commercial discussions for co-produced CO2 are also progressing
Details Reported by the Operator
The Operator has executed an initial short-term helium purchase and sales agreement to supply all of the helium produced at the Pinon Canyon Plant, the processing facility for the Galactica Project undertaken in joint venture with Helium One in North America.
Execution of the Agreement marks the joint venture's first formalised helium offtake commitment and establishes immediate commercial momentum at the Pinon Canyon Plant, complementing the trailer-by-trailer spot sales of initial production and bridging to the long-term offtake arrangements currently in negotiation.
Key Commercial Terms of the Agreement
In accordance with standard industry practice for helium offtake agreements, the commercial terms, including the identity of the counterparty and the agreed price, are confidential between the parties.
The Operator confirms the disclosable material parameters of the Agreement are structured as follows:
- The Counterparty: A premier, publicly listed corporation in the United States with a multi-billion-dollar market capitalisation. The entity holds a strong investment grade credit rating and is a prominent player in the global industrial gases distribution sector.
- Term: The initial Agreement has a fixed term expiring on 31 August 2026. This short-term transitional window allows for seamless product delivery and revenue generation covering the period during which the Operator is in ongoing negotiation of the wider, long-term offtake arrangements.
- Pricing Structure: Pricing has been agreed at a fixed level for the duration of the Agreement reflecting the short term. The agreed price is broadly reflective of the US helium spot market and the impacts on the market brought about by geo-political events relevant to US demand for locally sourced helium. The fixed price under the Agreement is distinct from pricing structures customarily seen in longer term contracts.
Helium Market Context
The North American helium market continues to exhibit strong pricing fundamentals, driven by sustained, structural demand across high-technology manufacturing sectors, particularly semiconductor fabrication, aerospace engineering, and advanced defence technologies. The global helium market continues to be affected by structural supply chain disruptions, rationing and surcharges, particularly resulting from prolonged instability in Middle Eastern supply routes, which has materially increased demand for reliable, US-sourced domestic supply.
With global inventory buffers tightening, pressure on the US domestic supply position underscores the strategic geographic advantage of the Galactica Project.
Production & Delivery Status
Following commencement of integrated operations at the Pinon Canyon Plant in March 2026, the Operator has worked through a phase of commissioning and optimisation typical of bringing a new helium processing facility to balanced steady state ('initial production phase'). This has involved iterative optimisation and refinement of components across plant and gathering system in close co-operation with the operations team and specialist contractors on site.
During the initial production phase and associated optimisation of the plant and gathering system continue, the tube trailer is being filled intermittently with refined helium for sale under a separate arrangement.
With these workstreams advancing, the plant has seen increased uptime and steady-state operations, successfully executing better routine runtime, shut-in, and restart cycles characteristic of its expected long-term operational profile.
As uptime and steady-state production continues to improve, subsequent helium production will be delivered under the new Agreement.
CO2 Commercialisation Update
The Operator is currently engaged in advanced discussions with multiple regional processing and end user parties.
Source: Helium One Global
