On November 4, 2026, Afghanistan’s Ministry of Mines and Petroleum concluded a $275 million natural‑gas agreement with domestic firm Azizi Group for exploration and extraction in northern Jawzjan province.
The 30‑year contract spans an area exceeding 3,000 square kilometres in the Jungal Kalan region of the Amu Darya basin. The venture is projected to support the generation of 1,000 MW of electricity and to create more than 2,000 jobs during implementation.
Minister of Mines and Petroleum Mullah Hedayatullah Badri, at the signing ceremony, highlighted the project’s socio‑economic impact and its role in enhancing Afghanistan’s energy security.
"This venture will not only unlock Afghanistan’s natural wealth but also foster significant economic growth, creating thousands of jobs and powering the nation," said Badri.
Natural gas, a hydrocarbon made mainly of methane, serves as a cleaner-energy source for electricity generation compared to coal or oil. Electrification via natural gas can reduce carbon emissions and supply reliable power for industrial and residential use.
The deal positions Afghanistan as an emerging player in Central Asia’s energy landscape, where gas volumes in the Amu Darya basin are largely untapped. By developing local resources, Afghanistan intends to reduce reliance on imported power and stimulate domestic production capacities.
In addition to this agreement, the Afghan government has been pursuing similar contracts with both domestic and international companies to develop its mineral, oil, and gas resources. These measures aim to unlock the country’s natural wealth, foster economic growth, and increase energy security.
Implementation of the contract will proceed in phases, beginning with exploration drilling to confirm reservoir characteristics, followed by pilot production and eventual scale‑up. The projected electrification of 1,000 MW is expected to support regional industrial zones and to supply the national grid.
Job creation estimates include direct employment for drilling, surveying, and plant operations, as well as indirect jobs in construction, logistics, and maintenance. The government anticipates that over the contract’s lifespan, local communities will benefit from infrastructure improvements and skill‑development programs.
While the Ministry of Mines and Petroleum has emphasized the contract’s economic potential, analysts caution that long‑term political stability and regulatory frameworks are essential for sustained investment. Nevertheless, the deal marks a significant step toward diversifying Afghanistan’s energy mix and securing a more independent energy future.
Future Outlook
If successful, the agreement could set a precedent for further natural‑gas projects within Afghanistan’s northern provinces, potentially expanding the country’s output and bolstering its position in the regional energy market.
