Finance
Air Products' European Operations Hit as Middle East Conflict Lifts Energy Costs
Published by Global Banking & Finance Review®
Posted on March 18, 2026
2 min readLast updated: March 18, 2026
Quick Summary
Air Products says its European operations face pressure from surging energy costs driven by Middle East conflict–related oil and LNG disruptions, though the company has shielded its overall performance via cost pass‑throughs and contingency actions, while helium supply remains volatile.
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)
Key Takeaways
- •Air Products’ European operations are under strain from elevated energy prices amid the Iran‑Middle East conflict, but the overall impact remains limited thanks to broad energy cost pass‑through mechanisms.
- •CEO Eduardo Menezes highlighted contingency measures like utilising storage and boosting U.S. liquefaction capacity to offset helium supply disruptions, even as helium market volatility rises post‑2024 U.S. Federal Reserve sell‑off.
- •The Middle East conflict, notably attacks on Qatari gas facilities, has triggered sharp spikes in LNG and oil prices—European natural gas prices nearly doubled in early March, reinforcing energy cost pressures.
Frequently Asked Questions about Air Products' European operations hit as Middle East conflict lifts energy costs
1How has the Middle East conflict affected Air Products in Europe?
The conflict has led to higher energy costs and some plant closures in Europe for Air Products due to rising oil and LNG prices.
2What is causing the rise in energy costs for Air Products in Europe?
Supply disruptions from the Middle East conflict have resulted in increased oil and liquefied natural gas prices, impacting energy costs.
3Is Air Products facing any direct production disruptions?
CEO Eduardo Menezes stated there is no major disruption to its own production, with energy costs being the primary issue.
4How is Air Products managing helium supply disruptions?
The company has activated contingency measures like drawing on stored helium and increasing U.S. plant utilization to ensure supply for critical customers.
5What has contributed to volatility in the helium market?
The helium market has become more volatile after the U.S. government sold its reserves in 2024, compounded by LNG processing disruptions in Qatar.