Saskatchewan’s first ever helium public offering adds $15.9M to provincial coffers

Saskatchewan’s first ever public offering for helium and associated gasses brought in $15.9 million this month.

The Ministry of Energy and Resources said growing demand for helium and hydrogen rights led to the introduction of the new public offering, using a process similar public offerings around petroleum and natural gas rights.

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“The launch of this new process is an important step in our government’s continued efforts to grow Saskatchewan’s helium sector, and to support potential development opportunities for natural hydrogen,” Chris Beaudry, Saskatchewan’s energy and resources minister, said in a statement.

“I am confident that this public offering process provides a fair and competitive way for industry to acquire mineral rights, strengthening our provincial economy.”

According to the ministry, Millennium Land Ltd. acquired all 15 helium and associated gas permits included in the public offering, adding up to more than a quarter-million hectares, with the highest bid coming in at $2.9M for a parcel located southwest of Regina.

“The permits grant the holder exclusive rights to explore for helium, natural hydrogen and other associated gases in Southern Saskatchewan for a six-year term,” the ministry added.

Two more public offerings are set to be held during this fiscal year, the ministry said, with one in August and the second in the fall.

The provincial government noted that Saskatchewan is Canada’s largest helium producer, filling roughly three per cent of the world’s demand for the gas. The government said through its Helium Action Plan, it aims to increase that share to 10 per cent by 2030. In addition to its best-known use in party balloons, liquid helium is also used as coolant in MRI machines and in nuclear magnetic-resonance spectrometers used for scientific research.

“The province also has natural hydrogen potential, with recent exploration activity highlighting strong interest and development opportunities,” the ministry noted.