Two companies which plan to build power stations in Pembrokeshire should know by the end of the year whether they have been given the go ahead.

But the question being asked is: Will they actually build the gas-powered plants?

Their proposals are currently with the Department of Productivity, Energy and Industry - formerly the Department of Trade and Industry.

Earlier this year RWE npower showcased its proposal for the old Pembroke power station site. It wants to build a 2,000 megawatt combined cycle gas turbine which could supply electricity for up to two million homes.

The other power station is being proposed by Milford Power, a company owned by Petroplus. It would be built next to the Dragon LNG project at Waterston and would operate using Liquefied Natural Gas.

In a recent article, The Times newspaper suggested there could be an oversupply of natural gas in two years and prices could tumble. This could result in power companies becoming reluctant to invest millions of pounds in the construction of gas power stations until energy prices are stabilised.

But Derek Lloyd, spokesman for Petroplus, said: "At this point, the planning process is continuing.

As far as we are concerned, the proposal is going through the planning process with the Department and we would expect a decision towards the end of September or October.

"Clearly if and when planning consent is granted then some commercial decisions will have to be taken."

An RWE npower spokesman said: "We are progressing to obtain consent. But it is certainly true that anyone looking to build a power station has to have an eye to the future and will obviously want an informed view of what prices are going to be.

"But for the moment we are continuing to go forward and hopefully will receive clarity from the department before the end of the year."