Blue Star Helium sold its first tube trailer of high-purity helium from the Pinon Canyon plant. A second trailer is filling under a fixed-price offtake deal. The company plans three new wells before year end.
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Blue Star Helium (ASX: BNL) sold its first production tube trailer of high-purity compressed helium gas from the Pinon Canyon processing plant at the Galactica project in Colorado. The sale came under an early production spot arrangement after a recent jump in uptime and output lifted fill rates.
A second tube trailer is now on-site and being filled. That one runs under a three-month fixed-price offtake deal signed last month with a major US industrial gases buyer.
The maiden sale closes the early commissioning and optimisation phase at Pinon Canyon, the company said. The plant is now showing routine runtimes and the shut-in and restart cycles that match the expected long-term operating profile.
Pinon Canyon processes raw gas from the Lyons Formation sandstone reservoir. An amine unit strips out carbon dioxide, then a helium recovery unit refines the remaining gas before it is pumped into tube trailers for the North American market.
Blue Star is considering deepening existing wells to expose more reservoir and increase well flow as the plant and gathering system continue to ramp up. Subject to permits, the company plans to drill three new wells before year end to tie into Pinon Canyon and boost raw gas throughput and helium output.
The company is also working on a commercial solution for the stripped carbon dioxide as a secondary revenue stream.
Managing director Trent Spry called the first tube sale an important milestone for Galactica.
"This milestone validates the quality of our helium product and establishes Blue Star as an active supplier to the US domestic helium market at a time when reliable, in-country supply commands a premium for US customers," he said.
The North American helium market is showing strong pricing on sustained demand from semiconductor fabrication, aerospace engineering and advanced defence manufacturing. Global supply remains tight after prolonged disruption to Middle Eastern supply routes, pushing US buyers toward domestic sources.
"The fixed pricing secured under our new offtake agreement reflects the strength of current US spot market demand and provides an operational bridge while we focus on finalising the broader longer-term structural agreements that are set to underpin our future output growth," Spry said.
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