Afghanistan factor in regional energy security and trade: Existing and projected challenges and opportunities

Abstract

Asia, where future world economic development is predicted and most of the energy resources are buried, has not been able to utilize its energy resources efficiently and remained at the core of political tensions, conflicts, terrorism and wars for decades. Major producers and consumers of fossil energy are located in this continent, and the potential of a vast energy market is inevitable. There are several challenges and opportunities associated with the energy trade in the region. On the one hand, the rivalries and competition over energy resources and territorial ownership and control between the USA, China and Russia have been the sources of most political and security issues in the region. However, on the other hand, the fast economic growth and availability of energy resources open up numerous trade and connectivity opportunities for the region. Afghanistan is a strategic state that serves as a geographic land-based hub for South Asia, Central Asia, China and the Middle East. It is no longer considered a land-locked country, but a strategic and key land link for the whole region. Afghanistan is the most economical and inimitable terrestrial corridor for the regional energy trade and transit upon which all stakeholders agree. Stability in Afghanistan will significantly change the importance of this region and open up doors for the realization of various mega projects, businesses and cultural exchange opportunities. Energy, as a strategic commodity for all of the regional countries, especially India and China as major consumers at present and in the future, will be a mega trade and connectivity opportunity.