Dubai Natural Gas Company Limited (Dugas) has joined hands with IGPL (FZE), a wholly owned subsidiary of IG Petrochemicals Limited, to set up a new joint venture in the UAE focused on manufacturing Maleic Anhydride.

Maleic Anhydride (MA) is a raw material used in automotive, shipbuilding, paint and varnish, construction, agricultural chemistry and other industries, said a statement from the company.

Dugas is a wholly-owned subsidiary of Emirates National Oil Company (Enoc).

The new venture, called Enoc-IG Petrochemicals, comes as a move by Dugas to diversify its portfolio from Methyl Tertiary Butyl Ether (MTBE) and represents a key step towards expanding the petrochemicals industry in the UAE, it said.

This partnership represents a milestone in the history of the Middle East, as this will be the first plant of its kind in the region, which is currently relying on imports to meet the market demand of MA, it added.

With the setting up of this project, the regional dependence for the import of MA will reduce significantly. The product will be sold in the GCC and India with a view to expand to other markets, including the European market, at a later stage, said the statement.

MA’s largest use today is in the production of unsaturated polyester resins. These resins are used primarily in fibre-reinforced plastics; materials with a wide and growing range of applications in boating, automobile and construction industries, it added.

Saif Al Falasi, group chief executive officer of Enoc, said: “Enoc-IG Petrochemicals marks a new step in our commitment to support Dubai’s focus on economic diversification.”

“It brings in new home-grown competencies to the economy with the aim of accelerating growth across a number of strategic sectors and enhancing all-round competitiveness,” he said.

“Enoc will continue to focus on promising partnerships, locally and internationally, to add value to our stakeholders and the community,” he added.

Saif Al Falasi has been named chairman of Enoc-IG Petrochemicals. The board comprises Saif Al Falasi, Tayyeb Al Mulla, Patrick Garrett and Farid Badri from Enoc and Mayank Dhanuka and Nikunj Dhanuka from IGPL (FZE).

Tayyeb Al Mulla, managing director, Dugas, said: “IG Petrochemicals Limited is an established market leader in manufacturing PA with extensive expertise and experience in setting-up and running petrochemical plants, which will help us in setting up our new line of operations.”

“Our company offers other considerable benefits to the joint venture such as its long standing experience in business and a wealth of technical expertise in running an existing petrochemical facility,” he said.

“IG Petrochemicals Limited will market the product, allowing us both to leverage their existing customer base and relationships,” he added. – TradeArabia News Service