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Afghanistan signs 275 million USD natural gas deal in Jawzjan province

The Afghan Ministry of Mines and Petroleum has entered a 30‑year contract with the Azizi Group to explore and extract natural gas in northern Jawzjan province, covering over 3,000 square kilometres and projected to create jobs and power generation capacity.

By Neutral EchoSource: english.news.cn1 min read

In brief

On November 4, 2026, Afghanistan’s Ministry of Mines and Petroleum signed a $275 million agreement with the domestic Azizi Group to develop natural gas resources in Jawzjan province. The 30‑year contract covers more than 3,000 square kilometres and is expected to create over 2,000 jobs and provide 1,000 MW of electricity. The deal reflects Kabul’s strategy to unlock mineral wealth and boost energy security.

Afghanistan’s Ministry of Mines and Petroleum concluded a $275‑million natural‑gas exploration and extraction agreement with the domestic Azizi Group on Wednesday, November 4, 2026, as reported by Xinhua. The contract, signed in Kabul, covers a 30‑year period and spans more than 3,000 square kilometres in northern Jawzjan province.

The agreement designates the Jungal Kalan region, part of the Amu Darya basin, as the area of focus for the gas‑field development. Azizi Group will conduct drilling, testing and infrastructure construction to extract natural gas, with the Afghan government retaining oversight and regulatory approvals throughout the 30‑year term.

Minister of Mines and Petroleum Mullah Hedayatullah Badri noted during the ceremony that the project is expected to generate significant socio‑economic benefits for the region. He said the venture would create more than 2,000 jobs during its implementation phase, supplying employment for local communities.

"It will create over 2,000 jobs in this province," Badri told reporters at the signing event.

According to Badri, once operational the project is projected to support the generation of 1,000 MW of electricity, which could contribute to regional power supply stability and reduce reliance on imported energy. The ministry highlighted the deal as part of a broader effort to develop Afghanistan’s mineral, oil and gas resources, aiming to unlock the country’s natural wealth, enhance energy security and foster economic growth.

In the context of Afghanistan’s recent attempts to diversify its economy, the partnership with Azizi Group reflects a strategy to engage domestic firms in the resource sector and attract investment in infrastructure projects. The government’s announcement aligns with its stated goal of boosting local employment, expanding renewable and fossil‑fuel power capacity, and improving the overall energy mix for the nation.

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