Islamabad: The Oil & Gas Development Company Limited (OGDCL) has successfully completed and commissioned the much-anticipated Jhal Magsi Development Project, marking an important step forward in efforts to strengthen Pakistan’s domestic energy supply.
Situated in the remote and underdeveloped region of District Jhal Magsi, Balochistan, the project is now delivering around 14 Million Standard Cubic Feet per Day (MMSCFD) of pipeline-quality gas and 45 barrels per day (BPD) of condensate. The gas has been injected into the Sui Southern Gas Company Limited (SSGCL) network, after the company laid a 98-kilometer gas transportation pipeline from the Jhal Magsi field to its tie-in point.
Background of the Project
The Jhal Magsi initiative has been years in the making, aimed at tapping into Balochistan’s underutilized hydrocarbon resources. The field itself was originally discovered in the 1990s, but remained dormant for decades due to challenging economics and the high cost of development.
Momentum picked up when the Government of Pakistan approved incentives in early 2024, including a shift from the 1997 Petroleum Policy to the Marginal Field Gas Pricing Policy. This policy change allowed previously unviable reserves—like those in Jhal Magsi—to be developed commercially, making the project financially sustainable.
Given Pakistan’s growing energy deficit, the government declared the Jhal Magsi development a high-priority project. OGDCL, as the lead operator, was tasked with fast-tracking execution despite logistical and security challenges in the region.
Project Execution
Work officially began in February 2024 with an accelerated schedule. The scope included installation of critical infrastructure such as:
Amine Unit for gas sweetening,
Dehydration Unit for removing water content,
Hot Oil Package,
Power generation facilities, and
Gathering systems to ensure efficient processing and transport.
Despite the region’s rugged terrain and security complexities, OGDCL and its partners successfully brought the project online within a short timeframe.
Partnership Structure
The Jhal Magsi field comprises two producing wells. It is being developed as a joint venture with:
OGDCL (Operator) – 56% working interest
Pakistan Oilfields Limited (POL) – 24% working interest
Government Holdings Private Limited (GHPL) – 20% working interest
Strategic Importance
With its commissioning, Jhal Magsi is set to play a small but significant role in Pakistan’s broader energy security strategy. While its volumes are modest compared to large fields like Sui, the project is seen as a milestone in tapping smaller, previously overlooked reservoirs through policy reforms and modern infrastructure.
The project also holds symbolic importance: it demonstrates how public-private partnerships and regulatory flexibility can unlock dormant resources in frontier regions like Balochistan, while creating local employment and contributing to regional development. OGDCL hailed the achievement as a reflection of its commitment to sustainable development of domestic hydrocarbon resources, noting that incremental projects like Jhal Magsi will collectively help reduce the country’s reliance on imported LNG. – ER News Desk
