Ghani Chemical Industries Limited (GCIL) Has Secured a Major Five-Year Gas Processing Contract From Oil & Gas Development Company Limited (OGDCL), Marking a Significant Step in the Company’s Expansion Into Pakistan’s Energy Sector.
The agreement will allow GCIL to process natural gas from the Sono Lashari Field into value-added hydrocarbon products, including Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and hydrocarbon condensates.
The company disclosed the development in a notification submitted to the Pakistan Stock Exchange (PSX) on Tuesday. The contract is expected to create a new long-term revenue stream and strengthen GCIL’s business portfolio beyond its traditional industrial and medical gases operations.
Five-Year Contract Awarded For Sono Lashari Field
Under the agreement, OGDCL will allocate a designated quota of raw natural gas from the Sono Lashari Field in Sindh to GCIL for processing.
The company will convert the allocated gas into commercially valuable products, including CNG, LPG, and associated hydrocarbon condensates, according to the agreed technical specifications and contractual arrangements.
The contract has been awarded for a period of five years, providing GCIL with a stable business opportunity while supporting Pakistan’s efforts to increase the value derived from its domestic natural gas resources.
The project also reflects continued collaboration between Pakistan’s largest exploration and production company and the private sector to improve downstream energy infrastructure.
Commercial Production Planned For Early 2027
Although the contract has been finalized, commercial production will begin after several preparatory phases are completed.
GCIL said project implementation will start after engineering work, procurement of equipment, regulatory approvals, and site mobilization activities have been completed.
The company currently expects commercial operations to begin during the first quarter of 2027, provided all technical, regulatory, and operational requirements are completed on schedule.
Until then, the company will focus on developing the necessary infrastructure required for processing natural gas from the field.
Project Could Generate Up To Rs2 Billion Annually
GCIL believes the project has strong commercial potential once production begins.
Based on the current technical configuration and prevailing market conditions, the company estimates that annual revenues could range between Rs1.5 billion and Rs2 billion after commercial operations commence.
However, the company emphasized that these estimates remain indicative and could change depending on several operational and market factors.
Actual revenue will depend on gas allocation levels, gas availability, product mix, plant efficiency, market prices, and other commercial conditions that may evolve during the project’s life.
Major Step In GCIL’s Diversification Strategy
The gas processing contract represents an important milestone in GCIL’s long-term growth strategy.
Traditionally known as one of Pakistan’s leading manufacturers of industrial and medical gases, the company is now expanding into the energy processing business to diversify its revenue sources.
GCIL stated that the project is expected to establish an additional recurring revenue stream throughout the five-year contract period, strengthening its long-term financial position.
The financial impact of the agreement will begin only after commercial operations officially start in 2027.
Project May Be Executed Through a Group Entity
The company also informed investors that the project may be implemented either directly by GCIL or through an appropriate group entity.
According to the company, the final implementation structure will depend on operational, commercial, and regulatory considerations.
GCIL clarified that whichever implementation model is selected, its contractual rights and obligations under the agreement with OGDCL will remain unchanged.
This flexibility enables the company to adopt the most efficient operational structure while ensuring compliance with all regulatory requirements.
GCIL Continues Expanding Industrial Footprint
Founded as a private limited company in 2015, Ghani Chemical Industries Limited converted into a public limited company in 2017.
Since then, the company has established itself as one of Pakistan’s leading manufacturers of industrial and medical gases.
GCIL currently operates five modern Air Separation Unit (ASU) plants that produce oxygen, nitrogen, argon, and other industrial gases supplied to hospitals and manufacturing industries across the country.
The company’s latest expansion into natural gas processing demonstrates its strategy to broaden operations into higher-value energy-related businesses while leveraging its experience in industrial gas production.
Positive Outlook For Pakistan’s Energy Sector
The contract also highlights continued investment in Pakistan’s downstream energy industry.
Processing natural gas into products such as CNG and LPG increases the commercial value of domestic energy resources while supporting industrial demand and improving fuel availability.
Projects of this nature also contribute to reducing dependence on imported fuel products by maximizing the utilization of locally produced natural gas.
If completed according to schedule, the Sono Lashari Field project could become an important addition to Pakistan’s hydrocarbon processing infrastructure while providing GCIL with a significant source of recurring income over the next five years.
The development is expected to be closely watched by investors as the company moves toward engineering, regulatory approvals, and commercial production in early 2027.