ISLAMABAD: Oil & Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production firm, announced the successful commissioning of the Jhal Magsi Development Project in Balochistan. The project, which is now supplying gas to the Sui Southern Gas Company Limited (SSGCL) network, was completed after overcoming technical and territorial challenges.
According to a notice issued to the Pakistan Stock Exchange (PSX), the project is delivering approximately 14 million standard cubic feet per day (MMSCFD) of pipeline-quality gas and 45 barrels per day of condensate. The gas has been injected into the SSGCL network after the completion of a 98-kilometre gas transportation line from the Jhal Magsi field to the SSGCL tie-in point.
The development activities for the project began in February 2024 following government approval for incentives, including the conversion from the 1997 Petroleum Policy to the Marginal Field Gas Pricing Policy. The project was prioritized to address the national energy demand, and its execution was carried out on an accelerated timeline.
The Jhal Magsi Field, which comprises two wells, is a joint venture in which OGDCL holds a 56% working interest, Pakistan Oilfields Limited (POL) holds 24%, and Government Holdings Private Limited (GHPL) has a 20% interest.
OGDCL emphasized that the project reflects the company’s commitment to strengthening Pakistan’s energy security through sustainable development of domestic hydrocarbon resources.
The project, which had remained dormant for nearly a decade due to pipeline delays, security risks, and commercial unviability under earlier policies, was revived after Prime Minister Shehbaz Sharif directed its fast-track execution and the Economic Coordination Committee approved incentives under the Marginal Field Gas Pricing Policy.
Independent certification in late 2022 confirmed its marginal status, paving the way for OGDCL to move forward. Development was completed at a cost of about 22.5 million dollars, with Gasco Engineering rehabilitating decade-old equipment and upgrading the processing plant to a design capacity of 20 MMSCFD of gas and 100 barrels per day of condensate.
The 98-kilometre API 5L Grade B carbon steel pipeline, laid across difficult terrain with military-supported security corridors and modern SCADA integration, now connects the Jhal Magsi wells to the SSGCL network. The project is expected to generate savings of nearly 298 million dollars annually by displacing imported LNG, with a payback period of less than two years and operating expenses of just 0.52 to 0.58 dollars per MMBTU.
