KARACHI: Ghani Chemical Industries Limited (GCIL) has secured a significant five-year contract from Oil & Gas Development Company Limited (OGDCL) for the development and processing of natural gas from the Sono Lashari Field, marking a major step in the company’s expansion into Pakistan’s energy processing sector.
According to a material information notice submitted to the Pakistan Stock Exchange (PSX), OGDCL has awarded Tender No. 308606791 to GCIL for processing natural gas into value-added hydrocarbon products. Under the agreement, OGDCL will allocate a designated quota of raw natural gas to the company for conversion into products including Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and associated hydrocarbon condensates, subject to agreed technical specifications and contractual terms.
The contract will remain in effect for five years. GCIL stated that project implementation will begin after completing engineering, procurement, regulatory approvals, and site mobilization. Commercial operations are currently expected to commence during the first quarter of 2027, provided all necessary approvals and formalities are completed on time.
The company noted that the project may be executed either directly or through an appropriate group entity, depending on operational, commercial, and regulatory considerations. This arrangement will not affect the company’s rights or obligations under the awarded contract.
Based on the current project configuration and prevailing market conditions, GCIL estimates the initiative could generate annual revenues ranging between PKR 1.5 billion and PKR 2.0 billion once commercial production begins. However, the company emphasized that these projections remain indicative and will depend on factors such as gas allocation, product mix, market prices, plant performance, and other operational conditions.
GCIL believes the project represents an important milestone in its strategy to diversify into the energy processing business, creating an additional recurring revenue stream over the contract period. The company added that the financial impact will start reflecting after commercial operations commence and assured shareholders that any further material developments will be disclosed in accordance with regulatory requirements.
