GCIL signs binding agreement for Jandran Field gas processing project

Mettis Global reported that Ghani Chemical Industries Limited (GCIL) told the Exchange a third party has received a Letter of Intent from Oil & Gas Development Company Limited (OGDCL) to buy raw saturated gas from the Jandran Field. Completing that purchase depends on signing a definitive Gas Sale and Purchase Agreement, finishing technical and commercial arrangements, and securing every applicable approval. Separately, GCIL has signed a binding agreement with that third party under which it will take on the technical and financial execution of the project.

The scope covers building, installing, commissioning and running the gas processing facilities, as well as processing, transporting, marketing and selling gas from the field. The project may be carried out by GCIL directly or through a special purpose vehicle, with the final structure to be approved by the Board of Directors. Capacity, capital expenditure, financing, timeline and expected financial contribution will be set after technical studies and negotiations conclude.

GCIL stated that the Letter of Intent and the binding agreement are important early steps but do not yet mean commercial operations have begun or guarantee any revenue or profit. Further updates are promised on the purchase agreement's execution, approval of the final project structure, financial close and the start of implementation.