ST Engineering Annual Report 2020

OPERATING REVIEW & OUTLOOK MARINE In Singapore, we handed over the first pair of Fast Patrol Boats to the Police Coast Guard in the last quarter of 2020 and we look forward to making more deliveries in 2021. This latest series of Fast Patrol Boats is the newest addition to the Police Coast Guard’s existing fleet to strengthen its coast protection capabilities. On the commercial front, the Floating Power Plant, Estrella del Mar III , which was awarded jointly with Siemens, will be delivered in 2021 to the Dominican Republic. Upon completion, Estrella del Mar III will provide affordable, clean and green energy to the Dominican people. Ship and Rig Repair The commercial ship and rig repair market remains highly competitive with pricing and scheduling as key considerations during the award of a tender. When oil prices hit their trough in March, oil majors scaled down their capital expenditures for exploration, and rig owners consequently reduced their demand for services and their maintenance spend. However, our continued engagements with potential customers paid off as we secured several ship and rig repair and conversion projects. We have a pipeline of ship and rig repair projects in niche areas such as complex repairs and the refurbishment of dredgers, conversion of offshore supply vessels into seismic support vessels, and the retrofitting of scrubbers and ballast water treatment systems. Environmental Engineering Our environmental engineering capabilities position us well to contribute to a more sustainable world, aligning with the Group’s focus. In the area of solid waste management, we are a part of a consortium with Keppel Seghers and China Harbour that clinched an engineering, procurement and construction contract worth about $1.5b for the development of a Waste-To-Energy facility and a Materials Recovery Facility for Singapore’s new Tuas Nexus Integrated Waste Management Facility (IWMF). Our 21% share of works involves the construction of the Materials Recovery Facility, power-island and the balance of plant. When fully operational in 2024, the facility will be an integral part of Singapore’s National Environment Agency’s long-term plan for the country to become a Zero Waste Nation. In the areas of water and wastewater management, we expect the Jurong Island Desalination Plant to be operational from mid-2021. As Singapore’s fifth desalination plant, it is expected to produce 30 million gallons of water daily. After overcoming major disruptions in the supply of materials and manpower, the plant will be moving to the testing and commissioning phase in 1Q2021. The Fast Patrol Boat is the latest addition to Singapore Police Coast Guard's existing fleet in strengthening its coastal protection capabilities / ST ENG I NEER I NG 58