Sembcorp Successfully Completes Acceptance Tests for its US$1 Billion Salalah Independent Water and Power Plant in Oman
May 28, 2012
Sembcorp Industries (Sembcorp) is pleased to announce that its joint venture, Sembcorp Salalah Power and Water Company, has successfully completed the acceptance tests for its US$1 billion Salalah Independent Water and Power Plant (Salalah IWPP) in Oman. The facility will provide power and water under a 15-year power and water purchase agreement with the Oman Power and Water Procurement Company, which is wholly-owned by the Government of Oman.
The Salalah IWPP consists of a gas-fired power plant with a total gross capacity of 490 megawatts and a seawater desalination plant with a total water production capacity of 15 million imperial gallons (69,000 cubic metres) per day. As the largest and most energy-efficient power and water plant in Dhofar in southern Oman, the Salalah IWPP is expected to play a major role in meeting the growing power and water demand of this region. The first phase of the project was completed in July 2011, within a tight timeline of 19 months from the signing of the power and water purchase agreement. The second phase was subsequently completed in the first quarter of 2012. With the completion of this third and final phase, the plant will commence full commercial operations.
Tang Kin Fei, Sembcorp’s Group President & CEO, said, “The successful completion of the Salalah IWPP will be a significant milestone for Sembcorp and reaffirms our capabilities as a leading global energy and water player. This facility will enable us to provide essential power and water to meet the growing demand in Dhofar. Together with our partners and the Omani government, we will play our part in helping to address the region’s pressing power and water needs. With the completion of the Salalah IWPP, our second project in the Middle East, we look forward to continue expanding our presence in this region.”
Sembcorp Salalah Power and Water Company is a joint venture between Sembcorp’s wholly-owned subsidiary Sembcorp Utilities, the Oman Investment Corporation and Bahrain-based Instrata Capital. Sembcorp holds a 60% stake in Sembcorp Salalah Power and Water Company, making this the single largest investment by a Singapore company in Oman. Sembcorp also owns a 70% stake in Sembcorp Salalah O&M Company, which is the joint venture company that will maintain and operate the Salalah IWPP.
The completion of the Salalah IWPP will augment Sembcorp’s portfolio in the Middle East, where it has been operating since 2006. Within the region, Sembcorp also owns, operates and maintains the Fujairah 1 Independent Power and Water Plant – one of the world’s largest operating hybrid desalination plants – in the United Arab Emirates. Together with the Salalah IWPP, Sembcorp’s projects in the Middle East amount to US$2.9 billion in project costs, with gross capacity in operation in the region reaching 1,383 megawatts of power and 115 million imperial gallons (524,000 cubic metres) per day of water.
- END -
For media and analysts’ queries please contact:
ABOUT SEMBCORP INDUSTRIES
Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. With facilities with over 5,600 megawatts of gross power capacity and over seven million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering as well as an established brand name in urban development.
The Group has total assets of over S$12 billion and employs over 9,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index, several MSCI and FTSE indices as well as the Dow Jones Sustainability Asia Pacific Index.
Note to Editors:
Please refer to the company as “Sembcorp” (with “S” in upper case and “c” in lower case), or “Sembcorp Industries” in full. Please also note that “Sembcorp” is not an abbreviation of “Sembawang Corporation” but a brand name in itself, and it is therefore incorrect to refer to our company as “Sembawang”, “Sembawang Corporation” or similar.