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Saudi energy group signs major Afghanistan deals covering gas exploration and pipeline plans

The agreements cover exploration across the Kushk and Tirpul contract area in Herat, spanning approximately 23,317 square kilometers.

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Saudi Arabia’s Delta Energy Group has signed a series of agreements with Afghanistan’s Ministry of Mines and Petroleum covering hydrocarbon exploration, natural gas utilization in Herat and a proposed regional gas pipeline.

According to a statement issued by Delta Energy on September 6, the agreements cover exploration across the Kushk and Tirpul contract area in Herat, spanning approximately 23,317 square kilometers.

Under the agreements, Delta Energy will conduct geological and geophysical studies, seismic surveys, exploration drilling and reservoir evaluations to determine the scale and commercial potential of Afghanistan’s hydrocarbon resources.

The company will also finance a study on the utilization of natural gas for Herat Industrial Park, Herat city and other approved areas, including potential applications in industry and power generation.

A separate agreement provides a framework to assess the proposed 700-kilometre CentGas “Corridor of Prosperity” pipeline, which would potentially connect a gas receipt point near Guzara district in Herat with a delivery point near Spin Boldak in Kandahar.

Delta Energy estimates the proposed pipeline could require about $10 billion in investment over 10 years, subject to technical and economic feasibility, financing, regulatory approvals and a final investment decision.

The company said the broader integrated programme could represent tens of billions of dollars in potential investment over the coming years, covering exploration, field development, gas utilization and related infrastructure. However, all subsequent phases will depend on exploration results, commercial viability, financing and required approvals.

Sheikh Badr Mohammed Al-Aiban, chairman of Delta International Holding Group, said the project was more than an oil and gas investment, describing it as an opportunity to develop an integrated energy ecosystem that could create jobs, support industry and improve regional connectivity.

Afghanistan’s Minister of Mines and Petroleum, Hidayatullah Badri, welcomed the agreements, saying cooperation with Delta Energy could help advance exploration of the country’s hydrocarbon resources, strengthen energy security and support economic activity.

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Transit of Afghan goods through Sheikh Abu Nasr Farahi border crossing doubles

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The transit of Afghan traders’ goods through the Sheikh Abu Nasr Farahi border crossing doubled in the first six months of the solar year 1405, reaching 805,000 tonnes, according to Iranian media.

Iran’s IRNA news agency quoted Mohammad Kuhgard, Director General of Customs in Iran’s South Khorasan Province, as saying transit volumes increased by 100 percent compared with the same period last year, strengthening the crossing’s role in regional trade.

Kuhgard also reported a sharp rise in goods handled under the “transit from origin” procedure at Mahirud Customs. Some 85,000 tonnes of goods passed through the facility during the period, an increase of more than 1,300 percent year-on-year.

Under this procedure, customs formalities for Afghan traders’ goods are completed at Mahirud before the shipments are transported to their intended destination countries.

Kuhgard said more than 65 kilometres of the road connecting Mahirud in Iran to Farah Province in Afghanistan have been asphalted. Completion of the route could help reduce transit times and transportation costs between the two countries.

The head of Iran’s Birjand Chamber of Commerce described Afghanistan as South Khorasan’s main export market and trading partner, saying stronger commercial ties, easier imports and the removal of customs barriers could further expand bilateral trade.

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Iran calls for extending Herat railway to Uzbekistan border

Meanwhile, Afghanistan’s Ministry of Public Works said the country has significant potential to serve as a regional connectivity hub.

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Last Updated on: October 20, 2026

Iran’s Minister of Roads and Urban Development, Farzana Sadeq, has called for extending Afghanistan’s railway network from Herat to the Termez border area in Uzbekistan to strengthen regional trade and transport links.

Farzana made the proposal during a specialised meeting on the Trans-Afghan Corridor in Astana, Kazakhstan, saying Iran is exploring ways to expand railway connectivity with Afghanistan and Uzbekistan.

She said the proposed route could create new opportunities for freight transportation and improve regional countries’ access to open waters. She added that the railway connection should eventually link with the wider railway networks of Central Asia and China.

The Iranian minister also proposed that countries along the Iran–Afghanistan–Tajikistan–Kyrgyzstan–China corridor hold a meeting under the Economic Cooperation Organization (ECO) to identify practical mechanisms for implementing the plan.

Referring to the Chabahar transit agreement between Iran, Afghanistan and India, Farzana said the port has the potential to facilitate the movement of goods from Afghanistan and Central Asian countries to international markets.

She also identified potential railway connections linking Afghanistan with Türkiye and Europe through Sarakhs and Razi, as well as access to the Caucasus and the Black Sea through Sarakhs and Jolfa, as projects worth pursuing within the regional transport network.

Meanwhile, Afghanistan’s Ministry of Public Works said the country has significant potential to serve as a regional connectivity hub. The ministry said Afghanistan welcomes investment from all countries, including Iran, in railway development and transit infrastructure and is ready to cooperate on such projects.

Transport ministers from Iran, Uzbekistan, Pakistan and Kazakhstan, along with the head of the Islamic Emirate of Afghanistan’s railway authority, attended the Trans-Afghan Corridor meeting in Astana.

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Dogharoun border handling 70% of Iran’s exports to Afghanistan

Dogharoun also accounted for 34 percent of the province’s imports and 20 percent of inbound transit goods from Afghanistan to Iran during the same period.

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Last Updated on: October 19, 2026

Mohsen Rokni, head of the Dogharoun border terminal, says the crossing accounted for 70 percent of Iran’s exports to Afghanistan during the first half of the current solar year, making it the leading export gateway among border crossings in Iran’s Razavi Khorasan Province.

According to Rokni, Dogharoun also accounted for 34 percent of the province’s imports and 20 percent of inbound transit goods from Afghanistan to Iran during the same period.

He said major Iranian exports through the crossing include construction materials, steel products, food items, fruits and vegetables, and petroleum products.

Located near the Iranian city of Taybad along the Afghan border, Dogharoun remains a key trade and transit route between the two countries.

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