By: OrePulse

Emarat and Al Fanar Gas Group have signed a memorandum of understanding to explore joint natural gas and compressed natural gas supply and infrastructure projects across the United Arab Emirates, the companies said, targeting commercial and city-gas customers.

The agreement, signed during ADIPEC 2026 in Abu Dhabi, sets out a framework under which Emarat would identify market opportunities and engage prospective customers while Al Fanar Gas Group works alongside it to build and operate the related infrastructure. The scope covers natural gas and CNG supply, central gas systems and transmission connections aimed at commercial and city-gas demand.

The two companies did not disclose financial terms, expected supply volumes, specific project sites or an implementation timeline. The agreement is non-binding and covers exploratory cooperation rather than a committed investment or construction program.

Nabeel AlMheiri, Emarat's chief natural gas business officer, said the partnership was aimed at "creating opportunities for more integrated approaches to gas supply and infrastructure." Al Fanar Gas Group Chief Executive Khaled Ben Said said the company's experience spanning feasibility studies, engineering, construction, commissioning and operations would complement Emarat's supply capability.

The MoU builds on a series of recent moves by both companies to expand their roles in the UAE's domestic gas sector. Emarat signed a separate memorandum of understanding in January with Sharjah National Oil Corporation covering LPG supply, part of a broader push by the company to widen its gas and liquid fuels distribution business. Al Fanar Gas Group has a history of infrastructure work spanning project feasibility through construction and operations across the region.

The agreement adds to a cluster of gas-sector cooperation announcements in the UAE this month, as domestic suppliers and infrastructure firms position themselves around growing demand from commercial and city-gas customers. While the deal remains at an early, non-binding stage, it signals continued interest from both companies in expanding natural gas and CNG distribution capacity domestically, even as the UAE's major state energy companies pursue larger international supply agreements.