Skip to main content
WorldVoice 360

Afghanistan signs 275 mln USD natural gas deal in Jawzjan province

Afghanistan signed a 275‑million‑dollar natural gas exploration contract with Azizi Group in northern Jawzjan province.

By WorldVoice 360Source: english.news.cn3 min read

In brief

Afghanistan's Ministry of Mines and Petroleum finalized a 30‑year agreement with domestic company Azizi Group to develop more than 3,000 square kilometres of natural gas fields in Jawzjan province. The venture is expected to create more than 2,000 jobs and supply 1,000 MW of electricity, boosting the country's energy security and economic growth.

In the northern part of Afghanistan’s Jawzjan province, the Ministry of Mines and Petroleum announced that it had signed a 275‑million‑dollar agreement with the domestic Azizi Group to explore and extract natural gas across more than 3,000 square kilometres of the Jungal Kalan region, which lies within the Amu Darya basin.

The ceremony happened on Wednesday, November 4, at a government site in the province. The contract is for 30 years and covers a tracts of land that the ministry says will be productive for the extraction of substantial gas reserves. The signing marked a key milestone in a series of agreements that the Afghan government has been pursuing with both domestic and foreign firms to tap into the country’s mineral, oil and gas resources.

Project Scope and Economic Expectations

Minister of Mines and Petroleum Mullah Hedayatullah Badri, who attended the signing, highlighted the socio‑economic impact of the project. He said the venture is expected to create more than 2,000 jobs during the implementation stages of the exploration and extraction work. In addition, he projected that once the gas is harnessed the project could support the generation of about 1,000 megawatts of electricity, a figure that would fill a sizable part of the country’s energy shortfall.

The agreement specifies that the Azizi Group will carry out the exploration, development and operation of the natural gas fields within the 3,000‑square‑kilometre area. The province’s Jungal Kalan district, located near the border with Turkmenistan, is part of the large Amu Darya basin that is believed to hold significant hydrocarbon potential. By focusing on a domestic partner, the government aims to strengthen local capacity and keep more of the economic benefits within Afghanistan.

Government Strategy and Energy Vision

Minister Badri said the contract is a step forward in the government’s agenda to unlock Afghanistan’s natural wealth. He noted that the ministry has advanced many agreements over the past years, targeting the mineral, oil and gas sectors as core areas for growth. The aim is to enhance energy security, diversify energy sources and foster broader economic development across the country.

The Ministry of Mines and Petroleum credits the contract with being a part of a broader plan to bring sustainable, renewable energy options to Afghan communities, especially in the rural regions of northern Afghanistan where power supply is often unreliable. By extracting natural gas from the inland basin and processing it into electricity, the project could reduce the country’s reliance on diesel generators and imported fuels.

Local Impact and Community Perspectives

For the people of Jawzjan province, the contract brings a promise of improved infrastructure and increased employment. Community leaders in Jungal Kalan welcomed the project, emphasizing that a new generation of jobs will help meet the needs of a growing population and reduce migration to larger cities. The local economy, historically dependent on agriculture and light trade, is expected to diversify as a result of the gas extraction activities.

Metropolitan officials said that the 1,000‑MW electricity output will feed into the national grid and, in turn, energize local businesses, schools and hospitals. By providing a stable power supply, the project hopes to encourage small industries to set up operations in the province, creating a virtuous cycle of employment and growth.

Future Developments and Monitoring

The government has outlined a framework for monitoring and reporting on the project’s progress. The Ministry of Mines and Petroleum will coordinate with Azizi Group to ensure that environmental and safety standards are met throughout the 30‑year duration of the contract. Periodic audits will evaluate the number of jobs created, energy output, and the economic benefits realized by the local communities.

In sum, the 275‑million‑dollar agreement between Afghanistan’s Ministry of Mines and Petroleum and Azizi Group marks a key investment in the country’s natural gas resources. The contract’s expected 2,000 jobs and 1,000‑MW electricity production are set to transform the economic landscape of Jawzjan province, underscore the government's commitment to renewable energy, and reinforce the broader strategy of harnessing Afghanistan’s mineral wealth for sustainable growth.

Topics

More on this story