LONDON (Reuters) - Plans to build a combined heat and power (CHP) plant at the UK's South Hook liquefied natural gas import terminal in Wales have been put on hold due to "current market conditions", South Hook CHP Limited said on Monday.
The original plan to build a 500 megawatt (MW) plant was announced in 2012 by project partners Qatar's QPI Global Ventures Limited, ExxonMobil Power Limited and Total's subsidiary Elf Petroleum UK Limited.
The deferral of the final investment decision on the South Hook plant follows a wave of cuts in recent weeks to the capital budgets of energy majors as they attempt to cope with a steep slide in crude oil prices.
"The construction of the proposed South Hook combined heat and power plant near Milford Haven, Pembrokeshire will be deferred and the project placed on hold," South Hook CHP Limited said in a statement.
"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."
Reporting by Sarah McFarlane; editing by David Clarke