Egypt Gas and Natural Gas Vehicles Company (Cargas) have signed a memorandum of understanding (MoU) with UAE United Eastern Group to convert vehicles to run on natural gas as well as to explore the development of natural gas transportation and delivery projects using virtual pipeline systems, according to a statement by Egypt Gas.

A virtual pipeline is a natural gas delivery system that uses trucks, rail cars, or ISO containers instead of fixed underground pipes.

The agreement, signed during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 2026), aims to coordinate the three parties’ efforts and draw on their technical, operational, and investment capabilities.

The cooperation will combine Egypt Gas’s extensive experience in implementing and operating natural gas projects and networks with Cargas’s specialist expertise in compressed natural gas applications and virtual pipeline solutions.

Eastern United Group will contribute its technical and operational expertise, investment and commercial capabilities, and institutional relationships within the UAE.

The MoU will involve preparing the technical, economic, commercial, and legal studies needed to assess the feasibility of the proposed projects and identify the most suitable solutions for the UAE market’s natural gas transportation and delivery needs, said Egypt Gas in a statement.

The agreement aligns with the petroleum ministry’s efforts to support the overseas expansion of petroleum sector companies and strengthen their presence in regional and international markets

Egypt Gas has a previous presence in the UAE, having begun operation and maintenance work for industrial facilities in Abu Dhabi in 2008 and established an Abu Dhabi branch in 2019. Its regional project experience also extends to Jordan, where its work has included industrial gas connections and pipeline construction.

In addition, Cargas exported its first shipment of hydraulic oils to Türkiye, marking its entry into lubricant exports. The company also visited Nigeria in May to explore expansion opportunities into the Nigerian market and participate in national initiatives aimed at expanding compressed natural gas (CNG) utilization.