Afghanistan has offered to sell its natural gas production on the European market as the disintegration of the Soviet Union hinders its efforts to resume gas exports.
Afghanistan approached Hungary and Czechoslovakia and plans talks with countries in western Europe. Afghanistan's only gas export vehicle is a pipeline to the gas grid of the former Soviet Union.
Afghan President Naibullah recently confirmed steps had been taken to put 31 shut-in gas wells in Sibrigan area fields back on production pending signing of a sales agreement with Moscow. However, those negotiations were shelved last month because of a squabble between Moscow and the Central Asian republics over price an distribution issues related to the proposed export of 42 bcf/year of Afghan gas to the republics, said Afghan Industries and Mines Minister Samad Salah.
Negotiations were muddied further with the formal dissolution of the U.S.S.R. and its replacement with the Commonwealth of Independent States last month.
Afghanistan had hoped to boost gas exports to the Soviet Union to about 100 bcf/year by 1995. A recent discovery in the Jawzjan area, where a 110 km pipeline extends to the former Soviet border, has added 350 bcf to Afghanistan's gas reserves. Oil & Gas Journal estimated Afghan gas reserves at 3.5 tcf as of yearend 1991.
The wells have been shut in for 3 years while gas exports to the U.S.S.R. were suspended during the civil war that continued to rage in Afghanistan after Soviet troops pulled out in 1989. Sales of Afghan gas to the Soviets accounted for 47% of Afghanistan's income prior to the Soviet troop pullout. Exports had fallen to less than 58 bcf in 1988 from 93.5 bcf in 1979 (OGJ, Aug. 29, 1988, Newsletter). Kabul recently asked Moscow for a price higher than the previous rate of $125/1,000 cu m and sought part of the payment in food and machinery. Moscow in November ended barter deals with Afghanistan and told Kabul it had to pay for imports with hard currency or natural gas beginning in 1992.
Kabul recently established an export ceiling of 60% of total Afghan gas reserves, earmarking the remainder for the war torn agricultural sector.
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