ISLAMABAD, April 21, 2026 – Oil and Gas Development Company Limited (OGDCL) has signed a memorandum of understanding with Uch Power Limited to jointly evaluate the technical and commercial feasibility of utilizing Zin gas for power generation, the company said on Tuesday.
The agreement marks a step forward in Pakistan’s efforts to harness underutilized indigenous energy resources, particularly low British thermal unit (BTU) gas reserves that have remained commercially challenging to develop.
OGDCL, the country’s largest exploration and production firm, has intensified efforts to unlock value from stranded gas assets, with a focus on accelerating output from fields such as the Zin Gas Field. The company said the initiative aligns with its broader strategy to improve energy security and reduce reliance on imported fuels.
As part of the plan, OGDCL is also engaging with the Government of Balochistan to explore the use of Zin’s low BTU gas in industrial clusters and fertilizer projects, aiming to spur regional economic development while optimizing domestic resource utilization.
Officials said the collaboration with Uch Power would assess whether Zin gas could be viably used for electricity generation, particularly in areas with limited access to conventional fuels. The study will cover infrastructure requirements, cost structures and potential integration into existing power systems.
The move highlights growing cooperation between upstream energy producers and power generators to develop innovative solutions for Pakistan’s energy challenges.
OGDCL said such partnerships are key to maximizing the potential of domestic hydrocarbon resources through targeted investments, while supporting long-term economic growth and improving the sustainability of the country’s energy mix.