GCIL wins five-year gasprocessing contract from OGDCL for Sindh field -

Ghani Chemical Industries Limited (GCIL), one of Pakistan’s leading producers of medical and industrial gases, has secured a five-year contract from Oil & Gas Development Company Limited (OGDCL) for the development and processing of natural gas from the Sono Lashari Field in Sindh.

In a notice submitted to the Pakistan Stock Exchange (PSX), GCIL said OGDCL will allocate a designated quota of raw natural gas from the field to the company, which will process it into value-added hydrocarbon products including Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and associated hydrocarbon condensates.

The project marks a strategic collaboration between two major Pakistani companies: Oil & Gas Development Company Limited and Ghani Chemical Industries Limited.Under the arrangement, OGDCL will provide the raw gas resource from its producing field, while GCIL will develop and operate the processing infrastructure needed to convert the gas into commercially marketable products.

OGDCL, Pakistan’s largest exploration and production company, is responsible for a substantial share of the country’s indigenous oil and gas output and operates numerous fields across Sindh, Punjab, Khyber Pakhtunkhwa and Balochistan. The company plays a central
role in Pakistan’s energy security by exploring, developing and producing hydrocarbon resources.

GCIL, incorporated in 2015 and converted into a public limited company in 2017, has rapidly emerged as a leading manufacturer in Pakistan’s industrial and medical gases sector. The company operates five state-of-the-art Air Separation Unit (ASU) plants and supplies gases to healthcare, manufacturing, engineering and industrial customers across the country.

GCIL said project implementation will begin after completing the required engineering, procurement, regulatory approvals 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 company estimates the project could generate annual revenues of approximately Rs1.5 billion to Rs2 billion once commercial operations begin.

The company described the contract as an important milestone in its strategy to diversify into the energy processing sector and create an additional recurring revenue stream over the five-year contract period.

Analysts say the collaboration highlights a growing trend of partnerships between Pakistan’s upstream energy companies and private-sector industrial players to maximise value from domestic gas resources. By converting raw natural gas into higher-value products such as LPG, CNG and condensates, the project is expected to improve resource utilisation while supporting local energy supply chains.

The financial impact of the project, GCIL said, will begin once commercial production starts, with the venture expected to strengthen the company’s long-term revenue base and expand its footprint beyond its traditional industrial gases business. – ER News Desk

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