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IEA orders ministries to prioritize ‘generation of power through coal’

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The Islamic Emirate of Afghanistan’s (IEA) Economic Commission, chaired by Deputy Prime Minister Mullah Abdul Ghani Baradar, on Sunday gave orders for various ministries to prioritize projects to generate electricity by using coal.

In a statement, the commission said after “extensive discussions on all issues that the private sector is prepared to invest in” it was decided that the generation of electricity should be a priority.

According to the statement, the commission instructed the Ministry of Mines and Petroleum; the Ministry of Trade and Industry; the Chamber of Industry and Mines; as well as the Chamber of Commerce and Investment, under the leadership of the Ministry of Energy and Water, to generate electricity from coal for industrial parks, and large cities among other sectors.

The commission also ordered the relevant bodies to “set priorities according to the volume of coal and the need for electricity, and then start working on it”.

Afghanistan currently generates over 600 megawatts (MW) of electricity from several hydroelectric plants as well as using fossil fuel and solar panels. However, an addition 670 MW is imported from neighboring Iran, Uzbekistan, Tajikistan and Turkmenistan but holds 73 million tons of proven coal reserves as of 2016, ranking 62nd in the world.

However, estimates put the total reserves at between 100 million and 400 million tons.

A shortage of power has plagued Afghanistan for decades despite having ample hydropower, coal and fossil fuel resources.

But one successful private partnership has been through Bayat Power, Afghanistan’s largest, Afghan-owned and operated Power Production Company which 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 thousands of people in Afghanistan.

Located in Sherberghan, in the north of the country, the epicenter of the nation’s gas-rich region, 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 41 megawatts of power for Afghan homes and businesses.

Bayat Power hopes however 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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36 mining contracts inked over the past year: Mines ministry

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The Ministry of Mines and Petroleum says it has signed 36 large and small mining contracts, with a total value of $1.3 billion over the past year.

Officials from the ministry stated that these contracts include 10 large mines, 25 small mines, as well as projects related to cement, salt, marble, and a major gas extraction contract with Uzbekistan, all signed with both domestic and foreign companies.

Meanwhile, economic experts have emphasized the importance of increasing investments in the mining sector for the country’s economic growth. They have stressed that priority in mining contracts should be given to domestic companies.

“It is better to prioritize domestic investors over foreign ones,” said Kamaluddin Kakar, an economic expert.

In the meantime, members of the private sector also stated that if both foreign companies and Afghan investors can partner in the mining sector, this will not only foster investment development in the country but also bring positive changes in capacity building within the mining extraction sector.

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Afghanistan ships first consignment to Europe via Khaf-Herat railway

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The press office of the Herat governor has announced the export of Afghanistan’s first shipment via the Khaf-Herat railway to Europe.

According to a statement from the office, the shipment includes 200 tons of dried fruits worth $1.2 million, which were exported to Turkey and Europe through the Khaf-Herat railway in the presence of Islam Jar, the governor of this province, and the Iranian Consul General.

The exported dried fruits in this shipment include pistachios, raisins, almonds, and pine nuts.

The statement added that over the past three months, more than 35,000 tons of goods have been transferred via the Khaf-Herat railway.

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Russia’s LPG exports to Afghanistan boom as Europe shuns it

The exports to Afghanistan, the main consumer of Russia’s LPG in the region, rose by 52% for the period to 71,000 tons.

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Russia’s exports of liquefied petroleum gas (LPG) to Afghanistan and ex-Soviet states in Central Asia have jumped following introduction of European Union sanctions against Moscow at the end of 2024, industry sources said on Wednesday, Reuters reported.

The European Union’s sanctions against Russia’s LPG over the war in Ukraine took effect on December 20. The restrictions were proposed last year by Poland, one of Russia’s largest LPG importers.

LPG, or propane and butane, is mainly used as fuel for cars, heating and to produce other petrochemicals.

According to the industry sources, railway supplies of LPG from Russia’s plants, including the Kazrosgas joint venture with Kazakhstan, jumped to the region by 80% year on year in January – February to 140,000 metric tons, read the report.

The exports to Afghanistan, the main consumer of Russia’s LPG in the region, rose by 52% for the period to 71,000 tons.

Traders expect great scope for more supplies to Afghanistan, where annual demand for LPG is seen at around 700,000 tons per year.

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