Gas Development Master Plan
There is a critical need to develop a gas sector master plan for Afghanistan's emerging gas sector. The master plan would cover a 20-year horizon (2015-2035) and would entail (i) preparation of gas demand and supply outlook and scenarios; (ii) development of market assessments and netback analysis; (iii) review current policies and plans in context of gas development; (iv) assessment of the financial requirements and needs; (v) evaluation of pricing options for various segments viz domestic sales and transit/exports; (vi) develop a planning model and train Ministry of Mines and Petroleum staff on its use; (vii) assessment of environmental, socioeconomic, and non-monetary impacts; (viii) review of other countries' experiences with gas supply chain development including compressed natural gas (CNG) sector; and (ix) formulation of an Afghanistan Gas Sector Master Plan and Implementation Strategy (with sequencing of priority investment projects).
Koh, Pei Ling
Central and West Asia Department
Request for information
- Technical Assistance
|Project Name||Gas Development Master Plan|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Energy / Energy sector development and institutional reform
|Gender Equity and Mainstreaming||No gender elements|
|Description||There is a critical need to develop a gas sector master plan for Afghanistan's emerging gas sector. The master plan would cover a 20-year horizon (2015-2035) and would entail (i) preparation of gas demand and supply outlook and scenarios; (ii) development of market assessments and netback analysis; (iii) review current policies and plans in context of gas development; (iv) assessment of the financial requirements and needs; (v) evaluation of pricing options for various segments viz domestic sales and transit/exports; (vi) develop a planning model and train Ministry of Mines and Petroleum staff on its use; (vii) assessment of environmental, socioeconomic, and non-monetary impacts; (viii) review of other countries' experiences with gas supply chain development including compressed natural gas (CNG) sector; and (ix) formulation of an Afghanistan Gas Sector Master Plan and Implementation Strategy (with sequencing of priority investment projects).|
|Project Rationale and Linkage to Country/Regional Strategy||
According to various studies conducted by the US Geological Survey and the Afghan Ministry of Mines and Petroleum, the total undiscovered technically recoverable natural gas reserves stand at 444 billion m3 in addition to the identified reserves of 75 billion m3. The development of Afghanistan's natural gas supply chain (production, transmission and allocation) must be the subject of deliberate planning in order to assure sustainable economic and market growth. In Afghanistan, there are three distinct gas basins with significant gas potential, namely (i) Amu Darya Basin (comprising North Basin West, North Basin East, Shirin Tagab, Saur-Kizbisay); (ii) Afghan-Tajik Basin (comprising Sanduqli, Mazar-i-Sharif, Ahmadabad, Balkh, Mohammad Jan Dagar, Shamar); and (iii) Kushka Basin (comprising blocks 1 to 6). Currently, the national gas utility, Afghan Gas Enterprise (AGE), owns and operates four gas fields producing a combined ~380,000 m3/day, nearly all of which is supplied to a single end-user, the Northern Fertilizer and Power Plant (NFPP). Recent seismic studies conducted by the United States Department of Defense also confirm significant gas potential in northern and western Afghanistan basins.
Afghanistan's gas sector is mired with infrastructure and regulatory deficits. Capital investment is needed through public sector funding, public-private partnerships, and private investments to exploit its potential and meet these challenges including (i) exploration for gas availability, (ii) strengthening and building processing and transmission infrastructure, (iii) strengthening regulatory and pricing issues, and (iv) building internal capacity of stakeholders. MoM has shared its envisioned timeline for capital investment priorities in its emerging gas sector, however, funding constraints have hindered the requisite development.
The government resolves to develop natural gas resources in a manner that maximizes benefits to Afghan society by supporting (i) growth in domestic public and private sector institutional competencies; (ii) growth in domestic industry and businesses, especially small- and medium-scale industries; (iii) increased employment across the country, especially in the less-developed and volatile provinces; (iv) infrastructure to support expanded economic activities, especially in less-developed provinces; and (v) expanded access to training and education in order to improve the quality of life for the people of Afghanistan while minimizing adverse social and environmental impacts.
|Impact||Improved energy security in Afghanistan|
|Description of Outcome||Improved Ministry of Mines and Petroleum capacity in the areas of investment planning and programming in gas sector supply chain|
|Progress Toward Outcome||A team of consultants , engaged in March 2014 for the TA Project implementation. Outcome has been achieved by summarizing the gas sector development masterplan of other countries; presenting the reserve assessment and the preliminary potential demand assessments to the stakeholders through a workshop; acquiring the data on the upstream gas sector, including reserves and production data; studying the gas demand in different sectors; and collecting the first Geo Information System data.|
|Description of Project Outputs||
A gas development master plan with the following features:
1. Assessment of gas resource potential (indigenous and possible importation options) and its optimized economic use and environmental impact
2. Determination of major allocation sectors and load centers, including gas demand forecast for a 20-year period (2015-2035)
3. Formulation of strategy for upstream, midstream and downstream gas sector development
4. Identification of investment projects to sustain Afghan gas sector and its linkages with power sector investments
5. Preparation of capacity development plan for Ministry of Mines and Petroleum to sustain gas sector master planning in Afghanistan
|Status of Implementation Progress (Outputs, Activities, and Issues)||PATA has progressed well and is physical closed. Final consultant's report was received on 29 March 2016 and endorsed by the Ministry of Mines and Petroleum. The findings of the report are being used by the Government in its energy sector policy documents and future hydrocarbon investment plans.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||During the PATA design and implementation, ADB closely engaged with relevant development partners and other stakeholders to share the progress and receive input through consultative workshops.|
|During Project Implementation||During the PATA design and implementation, ADB closely engaged with relevant development partners and other stakeholders to share the progress and receive input through consultative workshops.|
|Consulting Services||Recruitment of the consultant firm will be undertaken using quality-based selection by full technical proposal in accordance with ADB's Guidelines on the Use of Consultants (April 2010, as amended from time to time).|
|Procurement||Recruitment of the consultant firm will be undertaken using quality-based selection by full technical proposal in accordance with ADB's Guidelines on the Use of Consultants (April 2010, as amended from time to time).|
|Responsible ADB Officer||Koh, Pei Ling|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Energy Division, CWRD|
Ministry of Mines and Petroleum
Daud Saba, Minister
Pashtunistan Watt, Kabul, Islamic Republic of Afghanistan
|Concept Clearance||20 May 2013|
|Fact Finding||03 Jun 2013 to 13 Jun 2013|
|Approval||11 Jul 2013|
|Last Review Mission||-|
|Last PDS Update||28 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|11 Jul 2013||05 Aug 2013||05 Aug 2013||31 Oct 2014||15 Jul 2016||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|2,400,000.00||800,000.00||200,000.00||0.00||0.00||0.00||3,400,000.00||11 Jul 2013||1,348,620.33|
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|Title||Document Type||Document Date|
|Gas Development Master Plan: Technical Assistance Completion Report||Completion Reports||Sep 2017|
|Gas Development Master Plan||Technical Assistance Reports||Jul 2013|
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