Brian Zinchuk is editor and owner of Pipeline Online
SASKATOON, BROOKS – It’s not even finished, but Royal Helium already has buyers for all the helium it can produce out of its first facility.
Saskatoon-based Royal Helium Ltd announced on May 26 that it has signed a second, multi-year, fixed price off take sales agreement with a private North American corporation. The new sales agreement is in addition to the previously announced off take. That announcement, on Aug. 29, 2022, was to supply a space launch organization, but Royal wouldn’t say who it was.
Roya said this new agreement represents the remaining capacity from Royal’s Steveville helium processing facility located near the town of Brooks in southeastern Alberta, Canada. The new offtake for refined, 99.999% helium represents approximately 50 per cent of the Steveville capacity and is priced at USD $625/mcf, net of all transportation and liquefaction costs.
The term of the sales agreement is 36 months, commencing on first delivery with matching terms and conditions of the August 2022 sales agreement.
Andrew Davidson, president and CEO, said in a release, “As the commissioning of our first helium processing facility approaches, we are pleased to now have sales commitments for all of Steveville’s capacity. The Steveville facility is fed by two of Royal’s 100 per cent owned helium wells and is designed to produce 99.999 per cent refined helium gas which will be liquefied in Colorado under our previously announced tolling agreement.”
Royal has been posting regular updates of the building of its first processing facility on its social media, and they show the processing skids coming together. The company had previously expressed that its Steveville, facility was the first to be built, followed by one at Climax, Saskatchewan. Royal drilled its first helium well at Climax in January, 2021. However, its purchase of Imperial Helium allowed it to get moving on that site first.
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