Sembcorp Marine plans to build a new yard in Singapore to tap business in the energy sector, the company said.

According to Sembcorp, the first phase of the three-phased project will take nearly four years, commencing on December 2009.

Phase one of the development will cost S$750m ($537m).

The site is expected to be developed over a period of 16 years, the shipping firm said.

The company also hopes to increase the total dock capacity by 62%, from 1,897,500dwt to 3,075,000dwt, with the number of docks remaining at 11.

Once operations for Phase 1 begin, Sembcorp Marine’s service in Pulau Samulun will be relocated to the new yard.