Royal Helium, the Saskatchewan-based helium exploration company, has signed a tolling services agreement with Tumbleweed Midstream of Colorado.
The deal will see Tumbleweed process Royal’s 99.999% gaseous helium at its Ladder Creek Liquefaction Facility into liquid helium. The refined helium gas will be delivered from Royal’s helium wells and helium processing plant currently under construction at Steveville, Alberta to Tumbleweed’s facility in Colorado. Ladder Creek has warranted that the liquid helium delivered will meet or exceed a purity level of 99.999% in compliance with specifications set down by the Compressed Gas Association.
Royal Helium’s President and CEO Andrew Davidson welcomed the agreement.
“Liquefaction is a crucial step in both Royal’s production process and our off-take partner’s purchase process, as gaseous helium cannot be stored or transported over long distances. Ladder Creek’s location and processing capabilities and specifications align perfectly with our off-take partner’s delivery requirements,” he said.
The primary term of the agreement is for three years, through to December 31, 2025. It is renewable on a year-to-year basis thereafter. Ladder Creek will process up to 24 million cubic feet of crude helium per year for Royal with provisions for some excess if capacity allows.
Royal Helium controls over a million acres of prospective helium land across southern Saskatchewan and southeastern Alberta. In October last year it awarded a construction contract to Arjae Design Solutions of Nisku, Alberta to build and commission the Steveville 14-12 Helium Recovery Plant. Once fully operational the plant’s operating throughput is projected to be in the range of 10 to 15 million cubic feet a day.