Saudi Energy Deal Could Pave Way for $10 Billion Afghan Pipeline Project

Sep 08, 2026
Saudi Arabia’s Delta Energy Group has signed a series of agreements with Afghanistan’s Ministry of Mines and Petroleum to advance hydrocarbon exploration and build a major regional gas pipeline network, the company announced.

At the center of the framework is the proposed “Corridor of Prosperity,” a 700-kilometer regional natural gas pipeline known as CentGas.

The infrastructure project aims to connect a gas receipt point near the Guzara district in Herat province to a delivery point near Spin Boldak in Kandahar province, along the border with Pakistan.

Delta Energy estimates the CentGas pipeline will require approximately $10 billion in investment over the next decade.

Realization of the pipeline remains subject to technical and economic feasibility studies, securing project financing, regulatory approvals, and a final investment decision.

Beyond the pipeline transmission route, the agreements grant Delta Energy exploration rights across the Kushk and Tirpul contract areas in Herat, covering roughly 23,317 square kilometers.

The company will fund geological and geophysical studies, seismic surveys, dynamic reservoir evaluations, and exploratory drilling to gauge commercial resource potential.

Delta Energy will also finance feasibility studies to supply natural gas to Herat city and the Herat Industrial Park for power generation and industrial operations.

Company officials stated that the broader integrated project could unlock tens of billions of dollars in total energy infrastructure investment in the coming years if early exploration yields positive commercial results.

“This is an opportunity to develop an integrated energy ecosystem that could create jobs, support industry, and improve regional connectivity,” said Sheikh Badr Mohammed Al-Aiban, chairman of Delta International Holding Group.

Afghanistan’s Minister of Mines and Petroleum, Hidayatullah Badri, welcomed the investment framework, stating that cooperation with the Saudi firm could bolster domestic energy security, support broader economic activity, and help tap into previously undeveloped energy resources.

Saudi Energy Deal Could Pave Way for $10 Billion Afghan Pipeline Project