Sembcorp

Sembcorp Industries has inked a MOU to develop and build a new seawater desalination plant in UAE. The US$200m facility, which will be sited on one of the world’s largest desalination plants, Fujarah 1 Independent Water & Power Plant (40% owned by SCI), will boost its water prodn capacity in UAE by 30% to 130 mgd and be operational before the end-2013. Water output of this new facility will be sold to the Abu Dhabi Water and Electricity Company (ADWEC), under a 20-year deal.

This is in addition to a current 22-year deal for the water and electricity output from the Fujairah 1 IWPP to ADWEC. Separately, SCI has also established a 2nd beachhead in the Mid-East to build, own and operate another IWPP in Salalah, Oman. The US$1bn Salalah plant, with a gross power capacity of 490MW and a seawater desalination capacity of 15 mpd, is expected to be fully operational by 1H12.

At the same time, SCI also announced it will develop a new integrates wastewater treatment plant on Jurong Island’s Tembusu district and has secured its 1st customer in German specialty chemicals firm LANXESS even before the facility is completed in 2Q12. The $40m WWT plant is expected to double Jurong Island’s WWT capacity. Utilities business currently contributes about 30-35% to SCI’s net profit, of which Singapore accounts for two-third of the earnings.