Plant pulls helium from stranded Kansas gas

May 7, 2009
IACX Energy, Dallas, has started up what may be the world's smallest helium purification plant near Otis in Rush County in western Kansas.

By OGJ editors
HOUSTON, May 7 -- IACX Energy, Dallas, has started up what may be the world's smallest helium purification plant near Otis in Rush County in western Kansas.

Eight of the producers connected a gathering system formerly operated by a Oneok Inc. affiliate are selling low-Btu gas to the plant, which has the capacity to extract 15-30 Mcfd of helium.

IACX polishes the helium to 95% purity, compresses it to 2,800 psi, stores it in tube trailers for transport, and sells it on fixed, take-or-pay contracts. The government-set helium price is $62.25/Mcf.

IACX also operates three nitrogen rejection units with 3 MMcfd of total inlet capacity on the site that bring the 800-Btu raw gas up to pipeline quality. It vents the nitrogen. The first nitrogen unit came on in September 2008.

The company uses pressure swing adsorption, a molecular sieve process that works through activated carbon at low pressure and low volume. A chiller extracts natural gas liquids from the formerly stranded gas.

Gas produced from the Permian Chase Group and Cambro-Ordovician Arbuckle formations as deep as 3,000 ft in Reichel field and nearby fields 22 miles northwest of Great Bend contains 1.5% to 2% helium.

Many historical sales points for helium-rich gas are being closed or curtailed by gas purchasers, and helium production is on a sharp downward trend, IACX said. The company operates other nitrogen units in Kansas, Texas, Oklahoma, and Nebraska.