A major drop in the amount of liquefied natural gas (LNG) being brought into Pembrokeshire has had a significant impact on Milford Haven Port Authority’s (MHPA) profits.

The port’s cargo throughput has been significantly lower during 2012 than last year and net operating profit before tax is expected to be around £4m, down by around half on 2011.

The fall in profit is a direct consequence of significantly lower volumes of LNG entering the port.

The drop in demand for LNG was influenced by a number of factors around the world, including increasing gas prices due to high demand in Asia, brought about by the closure of nuclear power stations in Japan following the Fukushima incident in March 2011.

Low prices for imported coal competed with gas for electricity generation, and last year’s mild winter lowered demand for energy in the UK.

MHPA said that the international market conditions, which are the main cause of lower LNG imports into the UK, are not expected to change significantly in 2013 and 2014.

The port authority is also facing rising pension costs that are anticipated to lead to profits being lower again in 2013.

The Pilots National Pension Fund (PNPF) – a national final salary pension scheme for marine pilots – carries a total funding shortfall of approximately £200m and rising.

The PNPF has now indicated the amount it is currently seeking to recover from the port – around £800k per year for the foreseeable future – which if successfully imposed, create a substantial additional cost in 2013 and beyond.

The port’s own pension scheme is also in deficit by £8m.

Alec Don, port chief executive, said: “The fluctuation of LNG volumes into the port continues to emphasise the need to find alternative deep sea trades.

“We look forward to working closely with the Haven Enterprise Zone, the Welsh Government, Pembrokeshire County Council and others on this key need over the forthcoming year.”