GCIL signs binding agreement for Jandran Field gas processing project

September 01, 2026 (MLN): Ghani Chemical Industries Limited (GCIL) disclosed that a third party has received a Letter of Intent (LOI) from Oil & Gas Development Company Limited (OGDCL) relating to the proposed purchase of raw saturated gas from the Jandran Field.

The company said the proposed transaction remains subject to the negotiation and execution of a definitive Gas Sale and Purchase Agreement (GSPA) with OGDCL, completion of the required technical and commercial arrangements, and receipt of all applicable corporate, contractual, regulatory, and governmental approvals.

GCIL has entered into a binding agreement with the third party under which the Company will assume responsibility for the technical and financial execution of the proposed project, including the development, installation, commissioning and operation of the required gas-processing facilities.

The project scope is also expected to cover the processing, transportation, marketing and sale of gas produced from the Jandran Field, in line with the terms of the definitive agreements and applicable laws and regulations.

Subject to completion of technical and commercial due diligence, finalization of the project structure, execution of the GSPA and other definitive agreements, availability of the required financing, and receipt of all necessary approvals and consents, the project may be undertaken either directly by the Company or through a special purpose vehicle (SPV).

The final implementation structure, including the Company's ownership and funding arrangements in any such SPV, will be determined and approved by the Board of Directors.

The project is intended to enable the commercial utilization of gas resources from the Jandran Field through the installation and operation of suitable processing infrastructure.

The project's capacity, estimated capital expenditure, financing structure, implementation schedule, gas supply period, commercial terms, and expected financial contribution will be determined following completion of the relevant technical studies, negotiations and definitive documentation.

The company noted that the LOI and the binding agreement with the third party represent important preliminary steps toward the proposed development of the project; however, they do not, at this stage, constitute the commencement of commercial operations or give rise to any assured revenue or profitability for the Company.

GCIL said it will make further disclosures regarding material developments, including the execution of the GSPA, approval of the final project structure, the financial close, and the commencement of project implementation, in accordance with applicable legal and regulatory requirements.

The aforementioned information was disseminated through a notification to Exchange.

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