PLANS for a combined heat and power station at a Milford Haven gas storage plant have been axed.

The project was a partnership involving Qatar Petroleum, Exxon Mobil and Elf Petroleum UK, but a spokesman has said stakeholders were told earlier this month but “events had moved on”.

The plans for the power plant were granted planning consent in October 2014 but were deferred in February last year, after initial grounder’s had been completed.

About 600 construction jobs were expected to be created by the project, along with 30 permanent jobs at the site, which was next to the existing South Hook Liquefied Natural Gas terminal.

In an email to Milford Haven Town Council, a spokesman said the project was being cancelled “in the light of current market conditions and the international competition for project funding”.

“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.”

Cllr Stephen Joseph told The Herald: “I am sad at this news. When you have something of this magnitude just being called off now, it hits the local economy.”

Back in early 2015 a spokesperson for South Hook CHP Limited said: “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.”

Speaking on behalf of the Shareholders, Nasser Al Jaidah (Chief Executive Officer, 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 the 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.”

Speaking on behalf of the Shareholders at the time, Nasser Al Jaidah (Chief Executive Officer, 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 the 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.”

Speaking in 2015, Stephen Crabb MP said: “This is very disappointing news. The construction of the South Hook CHP project would have been a real boost for the local economy. Unfortunately, with the recent collapse in world energy prices, the shareholders of SHCP have had to look again at their planned investments.”

“South Hook CHP have invested considerable effort in bringing the proposals to this point and I am hopeful that this decision will be reviewed again when market conditions change.”

Cllr Paul Miller also spoke of his disappointment at the time: “The news that the South Hook CHP Project is to be put on hold is yet another blow for our county. Murco closing was a body blow but the short term construction jobs the CHP project could have brought – right now when Pembrokeshire jobs are disappearing fast – will be really missed.”