News

Sembcorp Industries’ natural gas unit, Sembcorp Gas, has concluded a Gas Sales Agreement (GSA) to import 90 billion British thermal units per day (BBtud) of natural gas at a value of US$5.5 billion.

Sembcorp Gas signed the conditional GSA with Premier Oil and its co-venturers, KUFPEC, Hess and PETRONAS for the supply and delivery of natural gas piped from Natuna Sea Block A off Indonesia, operated by Premier Oil.

Mr Tang Kin Fei, Group President & CEO of Sembcorp Industries and Chairman of Sembcorp Gas, said, “The import of additional gas will allow us to meet growing customer needs on Jurong Island and it will enlarge our earnings base and provide the platform for the future growth of our energy and centralised utilities business.

“The conclusion of this second GSA reinforces Sembcorp's position as a lead gas player in Singapore and will further enhance Sembcorp’s competitive position for the supply of steam for new demand in Jurong Island. Gas delivery is targeted to commence sometime between 2010 and 2011.

“Together with the gas contracted under the gas sales agreement signed in 1999, Sembcorp will be importing about 470 BBtu of gas daily. Worldwide, Sembcorp operates more than 3,300 megawatts power generation capacity through power plants located in Singapore, Vietnam, Fujairah in the UAE, and the UK.”

Sembcorp's additional gas import is primarily intended for the production of additional steam to meet growing demand in Jurong Island. In addition, gas has already been committed for sale to support new chemical and petrochemical investments in the area. The gas will be transported into Singapore through the existing gas pipeline system from the West Natuna Sea to Sembcorp's Receiving Terminal located at Sakra, Jurong Island.

The GSA becomes effective when the necessary agreements to transport this additional tranche of gas through the existing gas pipeline system within Indonesian waters are concluded. This is expected to be concluded by the third quarter of 2008.

This transaction is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp Industries for the current financial year.

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Analysts and media, please contact:

April Lee (Ms)
Senior Vice President
Group Corporate Relations
DID: +65 6723 3160
Email: [email protected]

Ng Lay San (Ms)
Senior Manager
Group Corporate Relations
DID: +65 6723 3150
Email: [email protected]

ABOUT SEMBCORP INDUSTRIES

Sembcorp Industries Ltd is a leading utilities and marine group. The Group provides centralised utilities, energy and water to industrial and other customers in Singapore, the United Kingdom, Asia and the Middle East. It is a global leader in marine and offshore engineering and also a provider of environmental and industrial park management services in the region. Sembcorp has total assets of over S$8.7 billion and employs more than 6,700 employees. Listed on the main board of the Singapore Exchange, Sembcorp is a component stock of the Straits Times Index and several MSCI indices.

Note to Editors:

Following a recent company rebrand, 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 brandname in itself, and it is therefore incorrect to refer to our company as “Sembawang”, “Sembawang Corporation” or similar.