Messer has successfully closed on its purchase of the Federal Helium System from the US Department of the Interior’s Bureau of Land Management (BLM).
The Federal Helium System was auctioned by the General Services Administration in January 2024 in accordance with the Helium Stewardship Act of 2013.
In March 2024, it was announced that Messer’s bid had been officially accepted.
As a result of its purchase, Messer has acquired the Federal Helium Reserve, the Cliffside Field with its wells and gathering system. The 423-mile-long crude helium pipeline, and additional operational assets.
Elena Skvortsova, President and CEO of Messer Americas, said the team has worked hand-in-hand with the BLM for the last several months to close the transaction.
During the two years prior to the transaction, Messer was selected to operate the system’s crude helium enrichment unit through a temporary agreement with the federal government.
Under Messer’s stewardship, the plant recently marked the delivery of cumulative one billion standard cubic feet of helium, reflecting a near 99% reliability rate.
Skvortsova added, “Messer is committed to being a safe and responsible operator of the Helium System and continuing to serve the many industries that rely on this vital resource.”
When the auction of the US Federal Helium System went ahead in late January, despite some industry attempts to stop it. Messer bid $353.35m for the system and all its assets, plus a further $70m (increased from an initial $21m bid) for a billion cubic feet of helium contained therein.
The only other bidder was Lazarus Energy Holdings, a small petroleum firm that speculatively offered $30.1m.
Under the terms of the auction, the General Services Administration had four months to decide on the auction’s outcome and could have rejected the two bids.
