Sembcorp Industries is set to build a 800MW cogeneration plant in Singapore to provide electricity and heat for its industrial customers.
The S$900m ($707.8m) plant will be located on Jurong Island. Sembcorp expects to fund this latest expansion through a mix of bank borrowings and internal resources, according to Reuters.
The first phase of the project is due to become operational by the second half of 2013. It will be fuelled by piped natural gas from Indonesia and liquefied natural gas.
Sembcorp has signed a long-term supply agreement with Singapore's liquefied natural gas aggregator BG Group for the supply of natural gas required for the plant.