The fire on the Stena Europe ferry last night sparked a massive emergency services response to the Fishguard port.
The ferry was en route to Fishguard from Rosslare when the alarm was raised.
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Coastguard rescue teams from Fishguard and Moylegrove, RNLI Lifeboats from St Davids, New Quay and Fishguard, a coastguard helicopter, Welsh Ambulance Service, an air ambulance, Dyfed-Powys Police and Mid and West Wales Fire and Rescue Service were all sent to the scene.
A Maritime and Coastguard Agency spokesperson said: “Just before 9.25 pm yesterday evening (February 11), HM Coastguard received an alert from a ferry reporting a fire in the engine room, the ferry was approximately two nautical miles off Fishguard Harbour, West Wales.
“The ferry’s crew extinguished the fire and the vessel made its way back to Fishguard Harbour."
A Stena Line spokesman corrected the previous impression given that a second fire had then broken out.
Her explained that the firefightes boarded the vessel when it had docked to 'boundary cool with water on the outside of the funnel'.
He added: “All passengers safely disembarked the vessel yesterday evening."
The Irish Independent newspaper, which described the fire as ‘serious’', reported that passengers were issued with lifejackets as the vessel approached Strumble Head.
The Stena Europe, constructed in 1981 and wirth a 24,828 tonnage, has since been reported as ‘inoperable’ by the Maritime Bulletin.
It remains in Fishguard Port with its 1pm sailing to Rosslare cancelled. It was not due to be sailing again until the end of this week because it had work planned in dry dock.
The ferry was not going to be this coming week because it was booked in to dry dock.
A statement on the Stena Line website said: "Due to operational reasons todays 13:00 hr sailing to Rosslare 12/2 has been cancelled. Please also note Stena Europe will be in drydock for scheduled maintenance from today Sunday 12th February. Sailings will resume with the 2345hrs sailing on Friday 17th February."
A Stena Line spokesman said: "At approximately 22:00 last night the Stena Europe was on route to Fishguard from Rosslare, when the crew were alerted to a small fire on one of the ship’s engines.
"The crew immediately initiated the ship’s safety protocols to ensure safety of passengers and crew before quickly extinguishing the fire without further support or incident.
"A short delay incurred whilst the area was made secure before continuing on passage to Fishguard arriving 30 minutes behind schedule.
"There were 88 passengers and 59 crew onboard. There were no injuries and all those onboard were disembarked safely.
"Damage to the vessel is minimal. It is now being removed from service while we undertake a thorough investigation as to cause of the incident, which will be undertaken in partnership with the maritime regulatory authorities.
"We would like to thank the local Welsh ambulance, fire and lifeboat services who deployed significant numbers of their resources as a precaution.
"We are sorry for any distress and inconvenience this has caused to our passengers. We have reached an agreement with Irish Ferries that all those booked to sail with us will be transferred to their Pembroke sailing, or can be transferred to an alternative Stena Line sailing at a different port.
"Further updates on the vessel and sailings will be issued in due course."
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