A new combined heat and power (CHP) plant, which will supply the energy needs of one of Milford Haven’s LNG terminals, has been officially unveiled.

Generating a supply of up to 49MW of electricity and 73MW of heat, Milford Energy Ltd will provide energy to the Dragon LNG terminal in Waterston, as well as other companies on the site.

Any surplus power generated from the plant, which boasts an efficiency rating of about 79%, will be exported to the local grid system.

The project, based around the original power plant of the former Gulf oil refinery, reuses much of the existing equipment on site, while replacing key elements, including the safety systems with new state-of-the-art equipment.

The new plant can also continue to operate and serve essential loads during an interruption to mains’ power supplies, increasing security of energy supplies to all users on site.

Milford Energy project manager Colin Martin, confirmed control of the plant would be handed over to Dragon LNG in the next few weeks.

At the official opening, director of the Combined Heat and Power Association (CHPA) Graham Meeks detailed the importance of CHP and its environmental and economical benefits in his speech.

Preseli Pembrokeshire MP Stephen Crabb congratulated Milford Energy and officially opened the plant by unveiling a plaque.

Director of Milford Energy, Alan Michael, said: “Construction and refurbishment works have been ongoing at the site since late 2007, in parallel with the main Dragon LNG project and it is fantastic to see the hard work and dedication of all involved come to fruition with the start of operations.”

A spokesman for Dragon LNG said: “We use electricity for our processes and heat, in the form of hot water, to warm our liquefied natural gas, turning it back into a vapour before it is sent into the National Grid and onto their domestic and commercial customers.

“We are very pleased to have a CHP plant linked to our process, further reducing our already low emissions and providing us with the benefit of electricity produced on site.”