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Afghanistan in Talks with Iran over Gas Imports TOLOnews.com, July 3,2016

Iranian media reported on Sunday that a series of negotiations are underway between Iranian officials and Afghan private sector to increase export of gas to Afghanistan.

“There are two initiatives to export the strategic commodity to the neighboring country, one of which is through extending pipelines. Moreover, natural gas can be transferred to Afghanistan in the form of compressed natural gas,” Alireza Kameli, the chief executive of National Iranian Gas Export Company said as he was quoted by Iran’s IRNA.

Underscoring the fact that Iranian officials are awaiting Afghanistan’s private sector proposal, Kameli said, “as soon as their plan is submitted and based on the amount of natural gas they want to purchase, talks will resume deciding about the price.”

According to the official, in case Afghans show interest in receiving the commodity via a pipeline, they should make it clear to what border point the pipeline will be extended as it affects the total price.

Gas experts opine that Afghanistan is a potential and lucrative market for Iran’s gas and it is very likely that it will buy gas from Iran.

However, they do not seem to be prepared to import natural gas from Iran due to their undeveloped energy infrastructure.

Natural gas was Afghanistan’s sole economically significant export in 1995, going mainly to Uzbekistan via pipeline.

Natural gas reserves were once estimated at 140 billion cubic meters. Production started in 1967 with 342 million cubic meters but had risen to 2.6 billion cubic meters by 1995. In 1991, a new gas field was discovered in Chekhcheran, Jawzjan province.

In August 1996, a multinational consortium agreed to construct a 1,430 kilometers pipeline through Afghanistan to carry natural gas from Turkmenistan to Pakistan, at a cost of about $2 billion USD.

But, due to U.S. airstrikes the project was canceled in 1998 and remained it an issue because of high political risk and security concerns. www.tolonews.com/en/business/26080-afghanistan-in-talks-with-iran-over-gas-imports

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