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Two new gas wells to be drilled in northern Afghanistan this year

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Last Updated on: June 7, 2023

The Ministry of Mines and Petroleum spokesman said on Tuesday that two new gas wells will be drilled in northern Jawzjan province this year and gas processing units will be installed alongside the wells in order to purify the gas on site.

The ministry’s spokesman Hamayoun Afghan said a gas pipeline of over 90 kms long, between Jawzjan and Balkh, will be completed and put into operation this year. “This year, we will try to complete the gas pipeline between Jawzjan and Balkh, and we will continue to dig new wells in the Yatem Taq area, and we will try to increase our production in order to increase our revenue,” he said.

He said currently 600 thousand cubic meters of gas is extracted and processed in Jawzjan province daily, but plans are in place to increase this to two million cubic meters per day.

“We are trying to buy new equipment to have a processing capacity of 2.5 million cubic meters of gas per day, and we are fully prepared to launch this project,” Afghan said.

The ministry did not however give any indication of whether agreements had been signed with private investors to extract the gas.

Khan Jan Alkozai, a member of the Afghanistan Chamber of Commerce and Investment (ACCI) said the country will benefit enormously if more investment is made in this sector.

“I think that there is a high capacity in the area of energy production from gas, and in the area of attracting investment in this area, the facilities should be provided,” said Alkozai.

Currently, there are gas fields in nine areas of Jawzjan province, including in Yatem Taq, Jarqaduk, Jangal Kalan, Khowaja Bolan and other areas.

Energy production is a priority for the Islamic Emirate as the government relies on neighboring countries to supply it with over 50% of its current electricity needs.

In addition to coal-fired energy production plants, the IEA is also encouraging investment in gas to electricity plants. This process in the country is not new, as one trailblazer has been successfully supplying electricity to hundreds of thousands of people for the past few years.

The company is Bayat Power, Afghanistan’s largest, Afghan-owned and operated power production company and it has the region’s most technologically advanced gas fired electric power plant.

Launched in 2019, this commercial operation provides reliable and affordable electric power to hundreds of thousands of people in the country.

Located in Sheberghan, in gas-rich Jawzjan province, Bayat Power has steadfastly aimed to provide essential power for Afghanistan’s economic growth.

Powered by a Siemens SGT-A45 ‘Fast Power’ turbine, the world’s most advanced mobile gas to energy power solution, phase one of Bayat Power-1’s operations generates up to 44 megawatts of power for Afghan homes and businesses.

To date, Bayat Power has delivered over 700 million kilowatts of domestic power to the Afghan grid.

However, Bayat Power hopes to eventually roll out three phases in total that will generate more than 200 megawatts of electricity – enough to serve millions of Afghan residential and commercial clients.

 

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Afghanistan eyes direct Basmati rice imports from India amid tensions with Pakistan

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Afghanistan is exploring direct imports of Basmati rice from India as it seeks to diversify its supply sources amid ongoing tensions with Pakistan, according to a report by The Hindu.

The report said Indian exporters and Afghan importers are expected to meet next month to discuss expanding direct trade in Basmati rice, following preliminary talks between officials from both countries held last week with the facilitation of the PHD Chamber of Commerce and Industry.

Afghanistan consumes nearly 500,000 tonnes of Basmati rice annually and has traditionally relied on imports from neighboring Pakistan. However, industry sources told The Hindu that recent strains in Afghanistan-Pakistan relations have encouraged Kabul to seek alternative suppliers, including India.

Representatives of Afghanistan’s diplomatic mission in New Delhi reportedly took part in the discussions and expressed interest in increasing purchases of Indian Basmati rice. At present, some Indian rice reaches Afghanistan indirectly through traders in Iran and Dubai, a route that adds to transportation and transaction costs.

One proposal under consideration is to transport rice through Iran’s Bandar Abbas Port, subject to agreements between the two governments. The discussions are also expected to cover logistics, payment mechanisms, and the possibility of barter trade, with Afghanistan’s dried fruit exports to India seen as a potential component of future trade arrangements.

According to The Hindu, a direct trade arrangement could help India expand its share of Afghanistan’s Basmati market, which has historically been dominated by Pakistani suppliers.

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Afghanistan, Kyrgyzstan establish trade council to boost economic cooperation

The two sides signed a memorandum of understanding to establish the Afghanistan-Kyrgyzstan Trade Council.

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The Embassy of the Islamic Emirate of Afghanistan in Kyrgyzstan says the Afghanistan-Kyrgyzstan Business Forum has been held with the participation of officials from both countries.

According to a statement issued by the embassy, Acting Ambassador Abdul Shakoor Haqqani said Afghanistan supports strengthening bilateral trade relations and promoting joint economic initiatives between the two countries.

The statement added that the two sides signed a memorandum of understanding to establish the Afghanistan-Kyrgyzstan Trade Council. The council aims to strengthen ties between business communities, coordinate joint initiatives, and expand and support economic projects.

Meanwhile, Sayed Karim Hashemi, Chairman of the Afghanistan Chamber of Commerce and Investment, arrived in Kyrgyzstan on Saturday at the head of a trade delegation to participate in the forum.

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Afghanistan invites Turkish investors to expand joint investments

Participants stressed the importance of increasing private sector cooperation and creating new opportunities to boost trade and investment between Afghanistan and Türkiye.

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A high-level Afghan business delegation, led by the Chairman of the Balkh Chamber of Commerce and Investment, Mohammad Ibrahim Ghazanfar, participated in the Afghanistan–Türkiye Joint Business Council meeting in Istanbul, calling for expanded joint investment and stronger economic cooperation between the two countries.

According to a statement from the Balkh Chamber of Commerce and Investment, Ghazanfar invited Turkish investors and industrialists to explore investment opportunities across various sectors in Afghanistan, emphasizing the country’s potential for mutually beneficial partnerships.

The meeting brought together business leaders, investors, and private sector representatives from both Afghanistan and Türkiye to discuss ways to strengthen bilateral trade and economic ties.

During the event, several cooperation agreements were signed between Afghan and Turkish economic institutions. The agreements are aimed at expanding commercial relations, promoting joint investment projects, and enhancing economic cooperation between the two countries.

The meeting was chaired by Süleyman Güllü, Chairman of the Türkiye–Afghanistan Joint Business Council, and was attended by Mohammad Akbar Azimi, the Islamic Emirate of Afghanistan’s Consul General in Istanbul, along with a number of businessmen and investors from both countries.

Participants stressed the importance of increasing private sector cooperation and creating new opportunities to boost trade and investment between Afghanistan and Türkiye.

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