Ghani Chemical Industries Limited has signed a binding agreement with an unnamed third party to develop and operate gas processing facilities for raw sour gas expected to be purchased from Oil and Gas Development Company Limited (OGDC) at the Jandran Field.

According to a material disclosure submitted to the Pakistan Stock Exchange on September 1, the third party has received a Letter of Intent from OGDC to purchase raw sour gas from the Jandran Formation.

The proposed deal is still subject to negotiations and the signing of a final Gas Sale and Purchase Agreement with OGDC. It also requires completion of technical and commercial arrangements and approval from relevant regulators and government authorities.

Under its agreement with the third party, Ghani Chemical will handle the technical and financial execution of the project. Its responsibilities will include developing, installing, commissioning and operating the required gas processing facilities.

The project is expected to cover the processing, transportation, marketing and sale of gas from the Jandran Field. Ghani Chemical may undertake the project itself or through a special purpose vehicle, with the final ownership and financing structure to be decided by its board.

The company said the project aims to commercially utilize gas from the Jandran Field by developing the necessary processing infrastructure.

Ghani Chemical cautioned that the project is still at an early stage and remains subject to technical and commercial due diligence, final agreements, financing and regulatory approvals. The LOI and binding agreement do not mean commercial operations have started and do not guarantee future revenue or profits.

The company said it will issue further disclosures when key milestones are reached, including the signing of the Gas Sale and Purchase Agreement, approval of the final project structure, financial close and start of project implementation.