This study aims to examine the potential substitute natural gas (SNG) production by integrating black liquor gasification (BLG) island with a small wheat straw-based non-wood pulp mills (NPM), which do not employ the black liquor recovery cycle. For such integration, it is important to first build knowledge on expected improvements in an overall integrated non-wood pulp mill energy system using the key performance indicators. O-2 blown circulating fluidized bed (CFB) gasification with direct causticization is integrated with a reference small NPM to evaluate the overall performance. A detailed economic analysis is performed together with a sensitivity analysis based on variations in the rate of return due to varying biomass price, total capital investment, and natural gas prices. The quantitive results showed considerable SNG production but significantly reduced electricity production. There is a substantial CO2 abatement potential combining CO2 capture and CO2 mitigation from SNG use replacing compressed natural gas (CNG) or gasoline. The economic performance through sensitivity analysis reflects significant dependency on both substitute natural gas production and natural gas market price. Furthermore, the solutions to address the challenges and barriers for the successful commercial implementation of BLG based polygeneration system at small NPMs are discussed. The system performance and discussion on the real application of integrated system presented in this article form a vital literature source for future use by large number of small non-wood pulp industries.