“In the U.S. Congress which restarted deliberation as to the shutdown of BLM’s helium pipelines and reserve facility, it seems they have come to the stage of last-minute wheeling and dealing toward the end of September, with the rise of three optional measures proposed to avoid shutdown. As of September 20, both optimism and pessimism are swirling even among the majors. There seems to be a fifty-fifty chance for BLM’s shutdown of the facility or continuance of its production as ever.

The domestic suppliers sent their staff in charge to the US to collect updated information on the local movements of the gas majors and the Congress.

The expression of “HELIUM CLIFF” came from the fact that October 7 of this year falls on the expiry date of enforcement of the Helium Privatization Act, which is the basis of operations for BLM who possesses the world-largest production facility and reserve system of crude helium. The shutdown work to close pipelines is scheduled to start on October 1. Therefore, unless a new bill to succeed the current Act is enacted, there will possibly be no supply of helium from BLM who occupies about 30% of the world production of helium. It is feared that there will occur a serious shortage in supply of helium all over the world including Japan.

The local progress in the Congress and the movements or trends of the major helium producers have already been reported previously. For a responsive measure now for subsequent actions, it is reported that the deliberations in the Congress are going on regarding three options, namely, to promote enactment of a new Act, to secure a budget to cover the costs related to BLM’s operation or to extend the term of the current Act.

At any rate, however, only ten days or so are left for any one of the proposed options. They are making tension-filled negotiations now.”