PLANS for a proposed combined heat and power plant (CHP) at South Hook LNG have been axed.

In a statement sent to Milford Haven town council earlier this month - seen by the Western Telegraph today - a spokesman said: "The Board of Directors of South Hook CHP Limited has decided, in the light of current market conditions and the international competition for project funding, to cancel the proposed South Hook Combined Heat and Power Project planned to be built adjacent to the existing South Hook Liquefied Natural Gas terminal near Milford Haven, Pembrokeshire.

"The decision not to proceed with the South Hook CHP Project was a difficult one for the shareholders to make and reflects the fact that in the light of today’s market conditions all discretionary major investments have to be rigorously appraised."

Plans for the plant near the South Hook LNG terminal were approved in 2014 by the Department for Energy and Climate Change, but were put on hold in January 2015.

Speaking at the time, Pembrokeshire County Council leader 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.”

Timeline

2012: QPI Global Ventures Limited, ExxonMobil Power Limited and Elf Petroleum UK Limited announced they were considering building a combined heat and power (CHP) plant within the boundary of the South Hook Liquefied Natural Gas (LNG) Terminal near Milford Haven.

It was predicted that all the power generated by the CHP plant would have been used to either replace power currently imported by the South Hook LNG Terminal or would have been exported to the electricity grid.

2013: Application for a Development Consent Order is made.

2014: Application is approved by the Secretary of State for Energy and Climate Change.

2015: A spokesman says that, "in light of current market conditions", the board of directors will defer the decision on proceeding with construction and the project will be “placed on hold”.