Ghani Chemical Signs Deal For Gas Processing Project In Balochistan

Ghani Chemical Industries Limited (PSX: GCIL) has entered into a binding agreement with an unnamed third party to develop and operate gas processing facilities linked to the proposed purchase of raw sour gas from Oil and Gas Development Firm Limited at the Jandran Field.

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• Under its binding agreement with the third party, Ghani Chemical will be responsible for the technical and financial execution of the proposed project.
• The project is additionally anticipated to cover the processing, transportation, marketing and sale of gas from 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 for the proposed purchase of raw sour gas from the Jandran Formation. The transaction remains subject to negotiations and execution of a definitive Gas Sale and Purchase Agreement with OGDC, along with the completion of technical and commercial arrangements and required regulatory and administration approvals.

Under its binding agreement with the third party, Ghani Chemical will be responsible for the technical and financial execution of the proposed project. This includes developing, installing, commissioning and operating the required processing facilities.

For context, the project is additionally anticipated to cover the processing, transportation, marketing and sale of gas from the Jandran Field. The final project structure could involve Ghani Chemical directly or through a special purpose vehicle, with the ownership and funding arrangements to be determined and approved by its board.

In practice, the firm stated the project is intended to enable the commercial employ of gas resources from the Jandran Field through the installation and operation of suitable processing infrastructure.

Ghani Chemical remarked the project remains subject to technical and commercial due diligence, finalization and execution of the definitive agreements, availability of financing and receipt of all necessary approvals and consents. The firm emphasized that the LOI and binding agreement represent preliminary steps and do not yet constitute the commencement of commercial operations or guarantee any revenue or profitability.

Meanwhile, the firm stated it will create further disclosures as material developments occur, including the execution of the Gas Sale and Purchase Agreement, approval of the final project structure, financial close and commencement of project implementation. Stay Connected with ProPakistani.

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Taken together, the developments around ghani Chemical Signs Deal For Gas Processing Project In Balochistan point to a situation that is still moving, and the coming days should bring more clarity.