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South Hook LNG power plant on hold

LNG Industry,

Plans for a proposed combined heat and power plant (CHP) at South Hook LNG terminal near Milford Haven, Wales, have been put on hold.

The UK government granted approval for the 500 MW station at South Hook in October. However, according to a statement on South Hook CHP Limited’s website, the final investment decision in being deferred due to ‘current market conditions’.

Market conditions

A spokesman for the company stated: “I can confirm that the Board of Directors of South Hook CHP Limited determined that, in the light of current market conditions, the decision regarding proceeding with the construction of the proposed South Hook combined heat and power (CHP) plant near Milford Haven, Pembrokeshire will be deferred 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 allow the timely and efficient restart of development if required.”

Integrated CHP plant

The proposed plant would have included an integrated CHP plant, based on combined cycle gas turbine technology including combustion turbine generators, heat recovery steam generators, steam turbine generations, stack for discharge of combustion gases, electrical switchgear and an area reserved for carbon capture.

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

Permanent jobs

The project was a partnership involving Qatar Petroleum, ExxonMobil and Elf Petroleum UK. According to the BBC, construction of the plant would have involved several hundred workers, creating 30 permanent jobs when completed and operational by 2018.

Speaking on behalf of shareholders, Nasser Al Jaidah, CEO of Qatar Petroleum, 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 the light of today’s market conditions all discretionary major investments have to be rigorously approved.

“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.”

Edited from various sources by Katie Woodward

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