Ghani Chemical lands OGDCL deal to process natural gas from Sono Lashari Field

Ghani Chemical Industries Limited has secured a five-year contract from Oil & Gas Development Company Limited (OGDCL) to develop and process natural gas from the Sono Lashari Field, with commercial operations expected to begin in the first quarter of 2027.

The company disclosed in a notice to the Pakistan Stock Exchange that it had been awarded Tender No. 308606791 by OGDCL for the development and processing of natural gas from the Sono Lashari Field.

Under the agreement, OGDCL will allocate a designated quota of raw natural gas from the field to Ghani Chemical for processing into value-added hydrocarbon products, including compressed natural gas (CNG), liquefied petroleum gas (LPG), and hydrocarbon condensates, in accordance with agreed technical specifications and contractual terms.

The contract will remain in effect for five years.

Commercial operations targeted for Q1 2027

The company said project implementation will begin after engineering, procurement, regulatory approvals, and site mobilization activities are completed.

Commercial operations are expected to commence in the first quarter of 2027, subject to the timely completion of all required formalities and regulatory approvals.

Ghani Chemical said the project may be executed either directly by the company or through an appropriate group entity, depending on operational, commercial, and regulatory considerations, without affecting its rights or obligations under the contract.

Revenue potential

Based on the current technical configuration and prevailing market conditions, the project has the potential to generate indicative annual revenue of approximately PKR 1.5 billion to PKR 2 billion once commercial operations begin.

The company cautioned that the estimate is preliminary and subject to several factors, including actual gas allocation and availability, product mix, market prices, plant performance, and other operating conditions.

According to the exchange filing, the project is expected to provide the company with an additional recurring revenue stream over the five-year contract period, with its financial contribution beginning after commercial production starts in early 2027.