• BNL secures key feed compressor for Voyager project
  • The company is set to become one of the first ASX-listed primary helium producers 

Blue Star Helium has secured key equipment for its 643 MMcf Voyager project in Colorado, paving the way for first production in Q4.  

As a vital part of BNL’s gathering system, the feed compressor was identified as a long lead item playing an integral part in Voyager’s development.

Following an inspection by Blue Star’s (ASX:BNL) engineering consultants, the compressor was acquired for a “non-material” consideration resulting in significant savings on pricing and delivery.

 

Blue Star ASX BNL
The compressor is shown with a red star. Pic: Blue Star Helium

The team has been working closely with experienced US midstream provider, IACX Energy, for site requirements and ancillary component acquisitions after the two parties executed a Master of Services Agreement (MSA) at the end of June.

 

Great time to be producing helium

Helium is a critical – and often irreplaceable – component in modern technology applications such as cooling semiconductor magnets in MRIs, manufacturing semiconductor chips and in fibre optics and welding.

Since it is not a traded commodity, the market is opaque, but BNL is set to become one of the first ASX-listed primary helium producers from its helium discoveries in Colorado.

While most analysts forecast the global helium market size will grow from US$4.45 billion last year to US$6.48 billion by 2027, Kornbluth Helium Consulting founder and president Phil Kornbluth says it’s likely closer to a US$6-7 billion a year market right now because of the opaqueness of major producers not sharing material information at the macro level.

“There’s quite a lot of uncertainty between now and 2027, but there’s a lot of activity aimed at developing new sources so it’s a great time for a start-up to be producing helium and earn a nice return, if they can get into production.”

 

IACX helium recovery unit delivery

BNL CEO and managing director Trent Spry says the compressor acquisition now means it will be ready for installation at the same time the IACX plant is delivered.

“The compressor is the feed from our gas gathering system into the IACX helium recovery unit and IACX has confirmed that they are on track for delivery in Q4.”

 

What’s next?

Blue Star has two approved wells for production and a further four locations awaiting approval with the COGCC. The initial development wells will be selected form these six for tie in to the IACX facility.

IACX expects to install and commission the facility during Q4 CY2023, subject to receipt of all necessary permits, surface use and access agreements.

Product sales are expected to commence promptly after first production.

 

 

This article was developed in collaboration with Blue Star Helium, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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