Ghani Chemical plans gas project at Jandran Field

Company to handle technical and financial execution under binding agreement with an unnamed third party; project remains subject to GSPA, financing and regulatory approvals Ghani Chemical Industries Limited (GCIL) has entered into a binding agreement with an unnamed third party to undertake the technical and financial execution of a proposed gas-processing project linked to the Jandran Field. According to a notice sent to the Pakistan Stock Exchange (PSX), the third party has received a Letter of Intent (LOI) from Oil & Gas Development Company Limited (OGDCL) for the proposed purchase of raw saturated gas from the Jandran Field. The proposed transaction remains subject to the negotiation and execution of a definitive Gas Sale and Purchase Agreement (GSPA), completion of technical and commercial arrangements, and required corporate, contractual, regulatory and government approvals. Under its agreement with the third party, GCIL will be responsible for developing, installing, commissioning and operating the required gas-processing facilities. The project is also expected to cover the processing, transportation, marketing and sale of gas from the field. GCIL said the project could be implemented directly by the company or through a special purpose vehicle (SPV), with the final structure, including its ownership and funding arrangements, to be determined and approved by its Board of Directors. The company said the project's capacity, capital expenditure, financing structure, implementation schedule, gas supply period, commercial terms and expected financial contribution would be determined after completion of technical studies, negotiations and definitive documentation. GCIL clarified that the LOI and binding agreement do not constitute the start of commercial operations and do not guarantee any revenue or profitability at this stage. The project remains subject to technical and commercial due diligence, finalisation of its structure, execution of the GSPA and other definitive agreements, financing and all necessary approvals. GCIL said it would make further disclosures upon material developments, including execution of the GSPA, approval of the final project structure, financial close and commencement of implementation.