A new gas-fired power station could be on the horizon for the Milford Haven waterway, South Hook LNG has confirmed.

The proposed gas-fired combined heat and power facility, which is being looked into by shareholders, would be situated close to the South Hook LNG terminal on the north side of the Milford Haven waterway.

A South Hook LNG spokesman said: “South Hook LNG can confirm that our shareholders are looking at the potential for a new gas-fired combined heat and power facility at the South Hook site.

Reviews are at an early stage.”

The news comes after the UK Government announced its backing for a major expansion in gas generated electricity, which has sparked fears among environmentalists.

But Friends of the Earth campaigners said the proposed facility is unlikely to be opposed if it uses its waste heat to regasify LNG, to be distributed as pipeline natural gas.

Pembrokeshire Friends of the Earth campaigner Gordon James said: “We welcome this as, from the outset, we have argued that LNG, imported through Milford Haven, should only be used to generate electricity in power stations that use the waste heat productively in Combined Heat and Power (CHP) systems.

“These are far more efficient than conventional power stations, emit far less carbon dioxide, and do not use the hugely damaging water cooling system that has triggered so much opposition to the new Pembroke power station.”

He said that a “dash for gas”

in conventional power stations would emit excessive amounts of carbon dioxide and undermine the development of renewable energy.

“Gas has a role to play in our shift to a low carbon society but only if it is burnt as efficiently as possible,” said Mr James.

“It is also vitally important that the new power station does not adversely impact on the very important Pembrokeshire marine environment.”