OGDCL completes Jhal Magsi gas project to boost Pakistan’s energy supply

The Oil and Gas Development Company Limited (OGDCL) has officially announced the successful completion and commissioning of the Jhal Magsi Development Project in the remote district of Jhal Magsi, Balochistan.

Initiated under the directive of Prime Minister Shehbaz Sharif, the project marks a major milestone in boosting Pakistan’s energy supply and supporting regional development.

The Jhal Magsi project is currently producing approximately 14 million standard cubic feet per day (MMSCFD) of pipeline-quality gas and 45 barrels per day (BPD) of condensate, the company said in a filing to Pakistan Stock Exchange on Monday.

The produced gas has been integrated into the Sui Southern Gas Company Limited (SSGCL) network via a 98-kilometer pipeline constructed by SSGCL, connecting the field to its system.

Development began in February 2024 following the government’s approval to transition the project from the 1997 Petroleum Policy to the Marginal Field Gas Pricing Policy, offering incentives to fast-track its execution. Despite technical and geographical challenges, the project was completed on an accelerated timeline.

Key infrastructure installed includes an amine unit, dehydration unit, hot oil package, power generation facilities, and a gas gathering system.

The Jhal Magsi Field comprises two wells and operates under a joint venture. OGDCL holds a 56% working interest and serves as the project operator, with Pakistan Oilfields Limited (POL) holding 24%, and Government Holdings Private Limited (GHPL) holding the remaining 20%.