⚡ Flash Summary

Mari Energies Limited (MARI) has entered into a Joint Venture Agreement with Ghani Chemical Industries Ltd. (GCI) to establish a project company focused on processing vent/exhaust gas from the Sachal Gas Processing Complex in Daharki, Sindh. The project aims to recover hydrocarbons from exhaust gas and produce liquefied natural gas (LNG) along with industrial and food-grade carbon dioxide (CO2). MARI will hold a 51% equity stake in the project company, while GCI will hold the remaining 49%. This initiative is expected to reduce greenhouse gas emissions and generate economic value for stakeholders.

📌 Key Takeaways

• 🤝 Joint Venture: MARI partners with Ghani Chemical Industries Ltd. (GCI).
• 🏭 Project Company: A new entity will be formed for the project.
• 💨 Vent Gas Processing: Focus on processing vent/exhaust gas from Sachal Gas Processing Complex.
• 📍 Location: The project is based in Daharki, Sindh.
• 🌱 Environmental Impact: Aims to reduce greenhouse gas emissions.
• 💰 Economic Value: Project intends to generate economic value for stakeholders.
• ⛽ LNG Production: Liquefied Natural Gas (LNG) will be produced.
• 🧪 CO2 Production: Industrial and food-grade Carbon Dioxide (CO2) will be produced.
• 📊 Equity Split: MariEnergies holds 51% equity.
• 🤝 Equity Split: GCI holds 49% equity.
• 📅 Agreement Date: The Joint Venture Agreement was executed on November 19, 2025.
• ℹ️ Previous Notice: Refers to earlier notice CA-25-4607 dated July 01, 2025.
• 🏢 Stakeholders: Project benefits stakeholders by reducing emissions and creating economic value.
• 🌱 Sustainability: Supports sustainable practices through waste gas recovery and processing.

🎯 Investment Thesis

I recommend a BUY rating for Mari Energies Limited. The joint venture with GCI to process vent/exhaust gas presents a compelling opportunity for MARI to diversify its revenue streams, reduce its environmental footprint, and enhance its ESG profile. The project aligns with global trends towards sustainable energy practices and positions MARI favorably in the market. Based on the potential for increased revenue and improved profitability, I set a price target of PKR 180 with a medium-term horizon (12-18 months).