Tumbleweed Midstream inks 10-year helium contract

 

Northern Colorado-based Tumbleweed Midstream, LLC announced it reached a new 10-year helium sales agreement with a global tier one helium supplier.

Tumbleweed, headquartered in Cheyenne Wells said the new contract will deliver a top-rated customer for the company’s Ladder Creek plant’s helium production capacity. It will also provide the customer a steady supply of helium through the end of 2030.

Tumbleweed did not disclose details of the agreement but indicated the value of the overall contract could exceed $500 million.

Tumbleweed Midstream Founder and CEO Durell Johnson said, “With much speculation in the helium market related to new supplies coming on from Russia and Qatar in 2021 and 2022, this new contract provides the stability we need to ensure our producers that their helium will be sold at fixed prices.”

Tumbleweed acquired the Ladder Creek Helium Plant and Gathering System in December 2019. The system serves natural gas producers operating in eastern Colorado and western Kansas.

Johnson said the company recently executed a new 15,000-acre dedication with a producer in Kansas and new drilling activity could bring additional production to the plant by the end of the first quarter 2021.

Source: BusinessWire