Blue Star Helium Faces Pressure to Convert Plant Operations into Long-Term Contracts
Blue Star Helium has activated its CO2 removal unit at the Pinon Canyon Plant, marking a key milestone in its Galactica Project and paving the way for integrated operations and sales growth in 2026.
- Pinon Canyon Plant's amine unit for CO2 removal now operational
- Integrated plant operations to commence imminently
- CO2 liquefaction and trailer loading components expected in first half of 2026
- 16 well tie-ins completed with further gathering system expansions underway
- Spot sales arrangements in place; long-term helium and CO2 contracts progressing
Galactica Project Advances with Operational Milestone
Blue Star Helium Limited has announced a significant step forward in its Galactica Project with the Pinon Canyon Plant's amine unit now operational. This unit is critical for removing carbon dioxide from the gas stream, enabling the production of refined helium. The company expects to begin integrated plant operations imminently, signalling a transition from commissioning to full-scale production.
The activation of the amine unit follows the delivery of the first helium tube trailer in December 2025 and a series of technical readiness checks. This progress reflects Blue Star Helium’s commitment to ramping up production capacity and meeting market demand for helium, a gas increasingly vital for technology and medical applications.
Infrastructure Expansion and Production Growth
Alongside plant commissioning, Blue Star Helium has completed tie-ins for 16 wells, with additional gathering system construction underway to connect the Jackson 27 well. These infrastructure developments are designed to support a steady increase in gas throughput throughout 2026, positioning the company for sustained production growth.
The company’s focus on expanding its gathering system and scaling well connections underscores a clear strategy to maximise output from the Pinon Canyon site. This infrastructure build-out is essential to ensure the plant can handle increasing volumes as drilling and infill activities progress.
Commercial Momentum Builds with Sales Arrangements
On the commercial front, Blue Star Helium has secured spot sales arrangements for helium and is actively negotiating long-term contracts with both helium and carbon dioxide off-takers. These discussions are advancing alongside visits from prospective buyers and investors, reflecting strong market interest in the company’s product offerings.
CEO Trent Spry highlighted the company’s optimism about the ramp-up phase, noting the encouraging progress on both operational and commercial fronts. The dual focus on helium and CO2 sales aligns with Blue Star Helium’s strategy to maximise value from its gas streams and diversify revenue sources.
Looking Ahead
With the CO2 liquefaction and trailer loading components scheduled for installation in the first half of 2026, Blue Star Helium is positioning itself to enhance operational efficiency and product handling capabilities. The joint venture with Helium One Global Ltd, which holds a 50% interest in the project, continues to underpin the Galactica Project’s development trajectory.
As the company moves from commissioning to commercial production, market watchers will be keen to see how quickly ramp-up translates into revenue growth and how long-term contracts shape the company’s financial outlook.
Bottom Line?
Blue Star Helium’s operational progress at Pinon Canyon signals a promising ramp-up phase, but contract finalisations will be key to sustaining momentum.
Questions in the middle?
- What are the expected production volumes as integrated operations commence?
- When will long-term helium and CO2 off-take contracts be finalised?
- How will the ramp-up impact Blue Star Helium’s financial performance in 2026?
