PLANS for a proposed combined heat and power plant (CHP) at South Hook LNG have been put on hold by the company’s board of directors.

Plans for the plant near the South Hook LNG terminal were approved last October by the Department for Energy and Climate Change.

Shareholders met last week to make the final decision on beginning construction of the plant near Milford Haven.

A spokesman for South Hook CHP said that the board of directors “in the light of current market conditions” will defer the decision on proceeding with construction and the project “placed on hold”

“Development work will be brought to minimum levels required to maintain the integrity of the work done to date and will allow the timely and efficient restart of the development if required.”

Speaking on behalf of shareholders, Nasser Al Jaidah, chief executive office of Qatar Petroleum International, said: “The decision to place the project on hold and to defer the investment decision on the South Hook CHP Project was a difficult one for the shareholders to make and reflects the fact that in light of today’s market conditions all discretionary major investments have to be rigorously appraised.

“The decision is in no way a reflection on the attractiveness of the South Hook CHP Project itself, the UK as a place to invest or the support we have received for the project from government and other stakeholders at the national, regional or local level.”

The proposed plant would have included an integrated combined heat and power plant based on combined cycle gas turbine technology including combustion turbine generator(s); heat recovery steam generator(s); steam turbine generator(s); stack for discharge of combustion gases; electrical switchgear; and area reserved for carbon capture.

It would have an installed capacity of up to 500MWe and produce sufficient electricity to both meet the existing LNG terminal’s power needs and to export surplus electricity.

Pembrokeshire County Council Leader, Councillor Jamie Adams, said: “I am disappointed because the investment would have provided considerable opportunities locally for individuals and businesses in the wake of the Murco refinery closure.

“I remain hopeful that the project will be realised at a future date.”