SEMBCORP POWERS AHEAD WITH COGENERATION EXPANSION ON JURONG

Awards EPC contract to construct a new cogeneration plant, set to double the company’s power capacity in the country

SINGAPORE, February, 22, 2011 – Sembcorp is pleased to announce that it has today signed an engineering, procurement and construction (EPC) contract with Alstom Power Singapore and

Alstom (Switzerland) for the development of Sembcorp’s second cogeneration plant on Jurong Island in Singapore. Construction for the project is expected to commence in the second half of 2011 and the plant’s first phase is expected to be operational by the second half of 2013.

The combined-cycle gas turbine cogeneration plant will have an eventual capacity of 800 megawatts of power and 400 tonnes per hour of process steam, roughly doubling Sembcorp’s total power capacity in Singapore to 1,615 megawatts, up from the current 815 megawatts. To be developed in phases, the first phase of the project will have a power capacity of 400 megawatts.

The facility will operate under a generation licence granted to Sembcorp by the Energy Market Authority and will be fuelled by piped natural gas, as well as liquefied natural gas (LNG) for which Sembcorp has signed a long-term LNG supply agreement with BG Singapore.

With an EPC contract value of approximately S$900 million for its entire planned capacity, this new cogeneration project is expected to be funded through a mix of bank borrowings and internal sources.

This latest milestone marks further progress in the growth of Sembcorp’s energy business, which now includes facilities in operation and under development in Singapore, China, Vietnam, India, the UAE and Oman