BAKU, Azerbaijan, August 11. Afghanistan's
Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani
Baradar Akhund called for an agreement on gas pricing under the
TAPI project.


This was reported in a publication by the Office of the Prime
Minister of Afghanistan.


Baradar called on Afghanistan and Turkmenistan to reach an
agreement on gas pricing and revise the pricing formula to limit
the impact of severe fluctuations in European markets on gas
prices.


“The agreement should be concluded for the long term, contain
simplified conditions, and include a flexible mechanism for
reviewing the agreement,” the publication said.


For reference, international gas trade uses several pricing
models. Historically, long-term pipeline contracts often linked gas
prices to oil or oil products. The European market, however, has
increasingly shifted toward hub-based pricing, with the
Netherlands' Title Transfer Facility (TTF) becoming a key
benchmark. The European Commission notes that TTF is used as an
index in a wide range of gas contracts.







This is particularly relevant for TAPI. In 2012, India said the
agreed price for Turkmen gas under TAPI was expected to be
calculated using a formula based on several indices, including a
fuel basket and other indicators, following international contract
practices. This means that the TAPI price does not necessarily have
to track a single exchange benchmark and can instead incorporate
several market indicators, coefficients and price-review
periods.


Baradar's reference to European markets appear to be relevant
because Europe's gas prices have become more sensitive to global
LNG markets following the decline in Russian pipeline supplies. TTF
is increasingly influenced by global LNG demand, supply
availability, shipping costs and geopolitical risks. In 2026,
uncertainty over LNG flows through the Strait of Hormuz and the
conflict involving Iran contributed to sharp price movements, while
TTF also moved alongside Asia's JKM benchmark.


For Afghanistan, this creates a commercial concern because the
country is both a TAPI transit state and a gas buyer, with about 5%
of the planned 33 billion cubic meters annual capacity allocated to
Afghanistan. Baradar's call for a long-term agreement with
simplified conditions and a flexible review mechanism suggests
Kabul wants to limit the impact of short-term external price shocks
while retaining the ability to adjust the pricing formula as market
conditions change.