Economy

Taliban launch work on gas field project in north

Taliban on Sunday launched work on the exploration and extraction of the Tooti Maidan gas fields in northern Afghanistan, a 10-year project that has been handed over to Eriellcom, an Uzbek company.

The contract for the 10-year project was signed in October 2024, under which an Uzbek firm would invest $100 million in the first year of the project.  

The project is designed to produce 100 megawatts of gas electricity in the first two years from the extracted gas.

The Tooti Maidan or Tuti-Maidan gas reserves have an area of ​​about 7,000 square kilometers.

At an inauguration ceremony, Abdul Ghani Baradar, the Taliban’s deputy chief minister for economic affairs, said the project would create jobs, meet domestic demand for gas, reduce dependence on imports, and eventually enable exports. He described it as proof that Afghanistan was secure and open to foreign and domestic investors.

“This project will play a significant role in the country’s economic growth,” Baradar said in remarks released by his office, adding that they would provide facilities and guarantees to attract investment.

Taliban did not disclose which company is implementing the project, the scale of the investment, or the timeline for production.

Since seizing power in 2021, the Taliban have sought to revive large-scale projects to counter an economic collapse triggered by sanctions and the cutoff of most international aid. They have signed agreements with Chinese, Iranian and regional firms for oil, gas and mining exploration, though few projects have yet moved beyond early phases.

There is also criticism about lack of explanation by the Taliban on the income from the mining sector.

Energy experts say Afghanistan’s gas reserves could supply some domestic needs but would require significant infrastructure, such as pipelines and power plants, to make exports viable.