Total Helium (TSXV: TOH) this morning indicated it is entering a slightly new vertical via a joint venture with its industrial gas partner: helium storage. The facility is expected to be only the second such facility in the US, and the only privately-owned storage facility.
The facility itself is to be established within a salt cavern in the state of Kansas, with the goal of bringing “long term helium storage and supply security to the industry.” The decision to construct such a facility comes amid uncertainty related to the future of the current Federal Helium Reserve, which is found in Amarillo, Texas.
Water rights for the facility have reportedly already been secured, while the company continues to advance geological and engineering studies, with the permitting process presently underway. Once operational, Total Helium is currently forecasting that the storage facility will have a capacity of 400 MMcf of helium, while being location near to a liquefaction plant as well as a natural gas and helium processing plant.
It is expected that the facility will be owned on a 50-50 basis with the firms industrial gas partner, whom was not named within the release. “Several” such industrial gas companies are said to be funding the project, with monthly payments allegedly being received already for advancing the project, although a dollar figure was not provided.
No financial details of the proposed facility were provided, including expected costs or the costs associated with obtaining water rights.
Total Helium last traded at $0.37 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
