CHP project on hold due to market conditions

A planned combined heat and power (CHP) plant in Pembrokeshireà‚ in the UK has been deferred, with stakeholders citing ‘current market conditions’.

The 500 MWe plant (pictured, artist’s rendition) was planned to include a gas turbine-based CHP system and carbon capture capability. It was slated to power a liquefied natural gas (LNG) terminal which processes gas piped from Qatar, and is operated by regasification firm South Hook LNG. à‚ 

While the plans were approved late last year by the UK’s Department of Energy and Climate Change (DECC), South Hook LNG’s board of directors has now decided to defer the decision to begin construction. The project will now be ‘placed on hold,’ a spokesman for the company was quoted as saying.

‘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,’ he added.

Nasser Al Jaidah, CEO of Qatar Petroleum International and a spokesman for the project’s shareholders, which include Exxon Mobil and Total, said: ‘The decision to place the project on hold and to defer theà‚ investmentà‚ 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.’

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