NASA contracts US$149M in domestic helium supply in the USA
We recently came across the following news from NASA, which contracted ~1.4 million litres of liquid helium and 87.7 million standard cubic feet of gaseous helium from three US-based helium producers.
The contract's total value is for a base fee of US$149M over three years.
NASA confirmed that it needed the helium "to support the International Space Station Program and the Space Launch System and Orion Programs that support the agency's missions to the Moon".
NASA also touched on the fact that Helium is an inert gas and how that specific characteristic makes it perfect for a range of uses, including:
- Purging hydrogen systems
- Pressurizing agent for ground and flight fluid systems
- A cryogenic agent for cooling various materials
- A gas used in precision welding applications
This is good news for our 2020 Catalyst Hunter Pick Of The Year Grand Gulf Energy (ASX: GGE), which is preparing to drill its second helium well at its project in Utah, USA.
GGE expects to be drilling its Jesse #2 well in Q4-2022/ early Q1-2023.
The ultimate aim of the drilling program will be to deliver a commercially viable helium flow rate that it can tie into existing processing infrastructure in the region and take GGE from explorer to producer.
Yesterday we wrote about this well in detail. To read that full note click here: GGE going after helium in the USA for US$260BN in chip facilities
We also used yesterday's note as an opportunity to launch our new GGE Investment Memo where you can find:
- The key objectives we want to see GGE achieve
- Why we are Invested in GGE
- What the key risks to our Investment thesis are
- Our Investment plan
