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The U.S.-based subsidiary of New Era Helium Corp, known as NEH Midstream (NEH), revealed that they have wrapped up sales off-take agreements for all the helium set to be produced at their forthcoming Pecos Slope plant. This plant is to be located just to the north of Roswell in New Mexico.

The task of constructing the facility, which is designed to have a capacity of 20,000 MCF (million cubic feet) every day, has been given to Arjae Design Solutions. Once operational, the plant is projected to generate around 2.7m standard cubic feet (MMscf) of high-grade crude helium. Additionally, it will produce 477,000 MCF per month of methane and a monthly yield of 32,545 barrels of natural gas liquids (NGLs).

The company had carried out an RFQ (request for quote) process with the support of Kornbluth Helium Consulting LLC. Upon its successful completion, NEH confirmed two enduring take-or-pay agreements concerning its helium. The initial segment of this agreement entails the sale of half of the plant's helium output as bulk liquid helium to a company named AirLife Gases USA.

The agreement also states that the other half will be channeled as top-grade crude gaseous helium to an undisclosed premier international gas provider. This provider is purported by NEH to hold a dominant position in the worldwide helium market.

The organization has shared its anticipation that the cumulative value of these two contracts will exceed $118 million over their duration.

Will Gray, the CEO of New Era Helium, expressed the company's satisfaction with securing these enduring take-or-pay agreements for the total helium output of the Pecos Slope Plant. He emphasized that the notable revenue from helium, which is projected to be $118 million, doesn't factor in potential revenues from other sources related to the plant, such as methane, NGL's, methane performance certificates, or the surplus power sales. Gray underscored that this multifaceted revenue model, combined with using their methane for various energy transition sources, sets them apart from their market rivals.

According to the article by Procurement Resource, New Era Helium Corp's subsidiary, NEH Midstream, has finalized sales agreements for all helium from its upcoming Pecos Slope plant near Roswell, New Mexico. The facility, constructed by Arjae Design Solutions, will produce 2.7m MMscf of helium, 477,000 MCF of methane monthly, and 32,545 barrels of NGLs. After an RFQ supported by Kornbluth Helium Consulting, NEH secured contracts with AirLife Gases USA and a leading global gas provider, anticipating revenues over $118 million. CEO Will Gray highlighted the diverse revenue potential, differentiating them from competitors.