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Afghanistan Signs 275‑Million Dollar Natural Gas Deal in Jawzjan Province

The Ministry of Mines and Petroleum concluded a 30‑year contract with Azizi Group to explore and extract natural gas in north‑central Afghanistan, expected to create jobs and supply power.

By OnPoint NowSource: english.news.cn2 min read

In brief

On November 4, 2026, Afghanistan signed a 275‑million‑dollar natural‑gas agreement with domestic company Azizi Group for a 30‑year period covering more than 3,000 square kilometres in Jawzjan province. The project is projected to create over 2,000 jobs and enable the generation of 1,000 MW of electricity, officials said, as part of a broader strategy to unlock the country’s mineral, oil and gas resources.

On Wednesday, November 4, 2026, Afghanistan’s Ministry of Mines and Petroleum signed a 275‑million‑dollar agreement with Azizi Group to explore and extract natural gas in the northern Jawzjan province.

The 30‑year contract covers an area of more than 3,000 square kilometres in the Jungal Kalan region, which lies within the Amu Darya basin. The vast expanse of the project signals a substantial development in Afghanistan’s hydrocarbon sector, the ministry noted.

Minister of Mines and Petroleum Mullah Hedayatullah Badri highlighted the venture’s potential socio‑economic impact, stating that the initiative is expected to create over 2,000 jobs during its implementation phase.

Badri also emphasized that, once operational, the deal could support a generation capacity of 1,000 MW, a figure that would contribute meaningfully to the national grid.

In a broader context, the Afghan government has been pursuing a series of agreements with both domestic and international companies to develop the country’s mineral, oil and gas resources, aiming to unlock natural wealth, enhance energy security, and foster economic growth, Xinhua reported.

The partnership with Azizi Group aligns with the government's strategy to emphasize domestic participation in resource extraction, potentially reducing reliance on foreign firms while keeping a larger share of revenues within the country.

According to the ministry’s statements, the natural‑gas project will not only supply electricity but also provide a platform for local industries to access a reliable energy source, thereby supporting broader industrial development plans.

While specific operational timelines have not yet been disclosed, the 30‑year duration of the contract suggests a long‑term commitment to both exploration and extraction activities within the region.

Experts note that the creation of more than 2,000 jobs will likely stimulate ancillary services in the Jawzjan province, including transport, equipment supply, and maintenance, further amplifying the project’s economic ripple effects.

As Afghanistan continues to seek avenues for diversifying its energy supply and creating jobs, the Azizi Group agreement represents a key milestone in the government's ongoing effort to secure a more sustainable and self‑sufficient economic future. Future updates will track the project’s progress and its impact on the national power grid and employment statistics.

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