By Sumit Saha March 18 (Reuters) - Industrial gases maker Air Products' operations in Europe are being significantly impacted by rising energy costs, as supply disruptions due to the Middle East
Air Products' European Operations Impacted by Surging Energy Costs Amid Middle East Conflict
By Sumit Saha
Impact of Energy Market Volatility on Air Products
March 18 (Reuters) - Industrial gases maker Air Products' operations in Europe are being significantly impacted by rising energy costs, as supply disruptions due to the Middle East conflict send oil and liquefied natural gas prices soaring.
Extent of Operational Disruptions
However, overall impact has been limited despite some plant closures, largely driven by broad increases in energy costs rather than any major disruption to its own production, CEO Eduardo Menezes said at a JPMorgan conference on Wednesday.
Helium Supply and Market Response
Menezes also addressed concerns about helium output, saying the industry would find ways to keep critical customers supplied even if disruptions persist.
Qatar’s Role and Helium Price Surge
Natural gas processing in Qatar has been severely impacted by the U.S.-Israel war on Iran, pushing helium prices sharply higher since the gas is produced as a byproduct of LNG processing.
Contingency Measures and Market Volatility
Air Products has activated contingency measures, including drawing on storage and running U.S. liquefaction plants at higher utilisation, Menezes said, though he warned that the helium market has become more volatile since the U.S. government sold its reserves in 2024.
Production Operations in Qatar
The company has limited production operations in Qatar, Menezes added.
(Reporting by Sumit Saha in Bengaluru; Editing by Jonathan Ananda)
