top of page

GSA Helium Auction Saw Low Participation and Undervalued Offers

The General Services Administration (GSA) went ahead with the Cliffside Federal Helium System auction despite attempts by the Compressed Gas Association to delay it, resulting in subdued bidder turnout. The auction featured two lots: Lot #1 with 1bcf of crude helium, which attracted a single US$21mm bid from Messer (implying US$21/mcf of the helium); and Lot#2, including a range of physical assets and reserves, which saw Messer again bidding alongside Lazarus Energy Holdings (a diverse energy management company), with offers of US$353mm and US$30mm respectively. With Messer's bid on Lot #1 significantly under current market value (vs global import export pricing averaging ~US475/mcf), it may face rejection, and although the auction is complete, there may be further legal challenges, and the immediate impact on helium supply is expected to be negligible. Under the terms of the auction, the General Services Administration now has 130 days to make a decision, which could include rejecting the two bids.

Want to read more?

Subscribe to akapenergy.com to keep reading this exclusive post.

Recent Posts

See All

Comments


Commenting has been turned off.
bottom of page