Ghani Chemical Industries Limited (GCIL) has taken another step toward expanding its business into the energy sector by signing a binding agreement for a new gas processing project in Balochistan.
The company has entered into the agreement with an unnamed third party that has received a Letter of Intent (LOI) from Oil and Gas Development Company Limited (OGDCL) for the proposed purchase of raw sour gas from the Jandran Field. The project is planned around the processing, transportation, marketing and sale of gas from the field.
The development is important for Ghani Chemical because the company is mainly known for producing and selling medical and industrial gases and chemicals. Moving further into gas processing could give the company another source of business and help it expand beyond its traditional operations.
According to the latest disclosure submitted to the Pakistan Stock Exchange on September 1, 2026, the agreement gives Ghani Chemical responsibility for the technical and financial execution of the proposed project. However, the project is still at an early stage and several important conditions must be completed before commercial operations can begin.
What the New Agreement Means
Under the agreement, Ghani Chemical will be responsible for developing the required gas processing facilities. Its responsibilities will include planning and developing the plant, installing the necessary equipment, commissioning the facility and operating it once it becomes ready.
The company will also be involved in the financial side of the project.
This means GCIL is not simply supplying equipment or providing a limited service. Instead, it is expected to play a major role in setting up and running the gas processing operation.
The proposed project is linked to the Jandran Field in Balochistan, where raw sour gas is expected to be supplied under a future arrangement with OGDCL.
However, there is still an important step left before the gas supply arrangement becomes final.
The third party that is working with Ghani Chemical has received an LOI from OGDCL. The parties still need to negotiate and sign a final Gas Sale and Purchase Agreement, commonly known as a GSPA.
Until that agreement is completed, the proposed gas supply arrangement cannot be treated as fully final.
Project Linked to Jandran Field
The Jandran Field is at the centre of the new plan. Ghani Chemical intends to use suitable processing facilities to make the gas commercially useful.
Raw sour gas normally needs proper treatment before it can be supplied to customers or used for different commercial purposes. A gas processing plant can help remove unwanted components and prepare the gas according to the required specifications.
For Ghani Chemical, this creates an opportunity to use its experience in gases and industrial products in a wider part of the energy business.
The company has already been moving toward gas-related activities in recent years. In February 2025, GCIL signed a Gas Sales and Purchase Agreement with Mari Energies and OGDCL for 3 million standard cubic feet per day of natural gas from the Maiwand-X1 discovery in Block-28, Kohlu, Balochistan. At that time, the company also planned to establish a gas processing facility in the area.
The latest Jandran Field agreement shows that gas processing continues to be an important part of GCIL’s expansion plans.
Ghani Chemical Expanding Beyond Its Main Business
Ghani Chemical has traditionally focused on medical gases, industrial gases and chemicals. These products are used by hospitals, factories and other industrial customers.
The company has been working to increase its production capacity and find new business opportunities.
Its move into natural gas processing is part of this wider expansion strategy.
Gas is an important part of Pakistan’s energy system. However, producing gas is only one part of the process. Gas needs to be processed, transported and supplied to customers before it can create commercial value.
By entering this area, Ghani Chemical can potentially build a new business line based on gas processing and related activities.
The company has already gained experience through other gas-related projects. In June 2026, GCIL secured a five-year contract from OGDCL for the development and processing of natural gas from the Sono Lashari Field. That project is expected to process gas into products such as CNG, LPG and associated hydrocarbon condensates. Commercial operations were expected to start in the first quarter of 2027, subject to approvals and completion of required work.
This makes the latest Balochistan project another important step in the company’s energy business plans.
Processing, Transport and Sale of Gas
The Jandran project is expected to cover several activities.
These include gas processing, transportation, marketing and sale.
The plan is to install the necessary infrastructure near the gas source and process the raw gas before it is moved toward potential customers.
The exact details of the final project structure have not yet been announced.
Ghani Chemical said the project may be carried out directly by the company or through a special purpose vehicle. A special purpose vehicle is a separate company created for a particular project.
The final ownership and funding structure will be decided later and will also need approval from the company’s board.
This approach gives GCIL some flexibility while the technical and commercial details are being completed.
Several Approvals Are Still Needed
Although the agreement has been described as binding between Ghani Chemical and the third party, the overall gas project is not yet ready to start commercial operations.
There are still several conditions that need to be fulfilled.
First, the parties need to complete negotiations with OGDCL and sign the final Gas Sale and Purchase Agreement.
Technical studies and commercial checks also need to be completed.
The project will also require financing. Ghani Chemical has made it clear that the availability of funding is an important condition for moving ahead.
In addition, the company will need the required corporate, regulatory and government approvals.
This means the signing of the agreement should not be viewed as the final completion of the project.
Instead, it represents an important step toward developing the proposed gas processing facilities.
No Guarantee of Revenue Yet
Ghani Chemical has also made an important point about the financial impact of the project.
At this stage, the company has not guaranteed any revenue or profit from the Jandran project.
The final financial results will depend on several factors, including the amount of gas available, the final project cost, gas prices, operating expenses, market demand and the successful completion of the processing facilities.
The company must first complete its technical and commercial due diligence before the final investment decision can be made.
This is important for investors because an agreement or LOI does not automatically mean that a company will immediately start earning money.
The project still needs financing, approvals, agreements and actual construction before it can become an operating business.
Potential Benefits for Ghani Chemical
If successfully completed, the project could provide several benefits to Ghani Chemical.
The biggest benefit could be business diversification.
GCIL currently has strong exposure to medical and industrial gases and chemicals. Adding gas processing and marketing to its operations could create another source of income.
The project could also help the company strengthen its position in Pakistan’s energy sector.
Another possible benefit is better use of domestic gas resources.
Instead of leaving raw gas without commercial use, processing infrastructure can help turn it into products that can be supplied to customers.
For Pakistan, projects like this can also support the wider goal of making better use of locally available energy resources.
However, the benefits will only become clear once the project moves from the planning stage to actual operations.
Balochistan’s Role in Energy Development
Balochistan has significant natural resources and has remained an important area for oil and gas exploration in Pakistan.
The province has several oil and gas fields, and companies continue to explore new opportunities in the region.
The development of processing facilities near gas fields can be useful because it can reduce the need to move raw resources over long distances before treatment.
The proposed Jandran project could therefore contribute to the development of energy-related infrastructure in the province.
At the same time, projects in Balochistan can face practical challenges, including infrastructure requirements, difficult terrain, transportation needs and security concerns.
Successful completion will depend on how effectively these issues are managed.
Ghani Chemical’s Growing Energy Portfolio
The latest announcement is not an isolated move by Ghani Chemical.
The company has been building a broader presence in the gas and energy business.
Its earlier agreement involving the Maiwand-X1 discovery in Kohlu was designed to supply 3 MMSCFD of natural gas during extended well testing. GCIL said the gas would help improve energy efficiency and allow the company to sell gas to industrial customers across Pakistan. It also expected gas sales to add more than Rs3.5 billion in annual revenue.
In another major project, GCIL partnered with Mari Energies to establish GHG Emissions Mitigation Limited for processing exhaust gas from the Sachal Gas Processing Complex in Daharki, Sindh.
That project is planned to produce 80,000 tonnes per year of LNG and 55,000 tonnes of industrial and food-grade carbon dioxide, with a total investment of around Rs14 billion. GCIL holds a 49% share while Mari Energies holds 51%.
These developments show that Ghani Chemical is gradually expanding its activities from traditional industrial gases into energy processing and related businesses.
What Happens Next?
The next major step for the Jandran project will be the finalization of the gas supply agreement with OGDCL.
After that, the company will need to complete technical and commercial work, arrange financing and obtain the necessary approvals.
The final structure of the project will also need to be approved.
Once these requirements are completed, Ghani Chemical can move toward the development, installation and commissioning of the processing facilities.
The company has said it will provide further updates whenever there are important developments. These updates are expected to include the signing of the final Gas Sale and Purchase Agreement, approval of the final project structure, financial close and the start of project implementation.
A New Opportunity for Ghani Chemical
Ghani Chemical’s new agreement for the Jandran Field gas processing project marks another important move into Pakistan’s energy sector.
The company will be responsible for the technical and financial execution of the proposed project, including development, installation, commissioning and operation of the gas processing facilities.
The project could create a new business opportunity for GCIL and help it diversify its income sources. It could also support the commercial use of gas resources in Balochistan and add to the province’s energy infrastructure.
However, investors and other stakeholders should keep in mind that the project is still at an early stage. The final gas supply agreement has yet to be signed, while technical studies, financing and government approvals are still required.
For now, the agreement is a positive step toward a potentially larger gas processing business for Ghani Chemical. If all the required conditions are successfully completed, the Jandran Field project could become another important part of the company’s growing energy portfolio.
The development also reflects a wider trend in Pakistan, where companies are looking for new ways to process and add value to locally available gas resources rather than depending only on traditional business activities.
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