Ghani Chemicals to turn OGDCL gas into CNG, LPG from 2027

Ghani Chemical Industries Limited (GCIL), a prominent Pakistani manufacturer of medical and industrial gases, has been awarded a five-year contract from Oil & Gas Development Company Limited (OGDCL) for the development and processing of natural gas from the Sono Lashari Field located in Sindh.

GCIL shared the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“Under the terms of the awarded contract, OGDCL shall allocate to the company a designated quota of raw natural gas from the field for processing into value-added hydrocarbon products, including Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and associated hydrocarbon condensates,” read the notice.

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GCIL expects to commence project implementation following completion of the required engineering, procurement, regulatory and site mobilisation activities. Commercial operations are currently expected to commence during the first quarter of 2027.

“Based on the current technical configuration and prevailing market conditions, the project has the potential to generate indicative annual revenues of approximately Rs1.5-2 billion upon commencement of commercial operations,” read the notice.

GCIL was of the view that the project represents an important milestone in the company’s strategy to diversify its business into the energy processing sector and is expected to establish an additional recurring revenue stream over the contract term.

“The financial impact of the project will commence upon the start of commercial operations,” it added.

Incorporated as a private limited company in 2015 and converted to a public limited company in 2017, GCIL has grown to become a leading manufacturer in its sector. The company operates five state-of-the-art ASU plants for producing industrial and medical gases.