DOUBT has been cast over the future of a proposed combined heat and power plant (CHP) at South Hook LNG.

In a statement sent to Milford Haven town council earlier this month - seen by the Milford Mercury - 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 LNG 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."

But, in an additional statement on Wednesday, the spokesman added that events had since "moved on", but it would be "inappropriate to comment further".

Mayor of Milford Haven, county councillor Stephen Joseph, said he had been aware that plans had been cancelled for some time, and was "puzzled" by this latest announcement.

"If it hasn't finished, the only thing it could have 'moved on' from is that it's still going ahead, or South Hook are looking to sell the site," he said.

Cllr Joseph was on the county council's planning committee when permission for the development was first granted, and said plans "painted such a rosy picture of a magnificent development, I can't see the reason to not do it".

He said he hoped this latest development in the South Hook story could only mean "good news" for Milford Haven.

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 because of "market condition".