The former Puma Energy fuel terminal in Milford Haven will stop its commercial operations at the end of December.
Its owner, Impala Terminals, says it tried and failed to land a new contract for the site, and has entered a formal consultation with the staff affected.
The company said it had tried to avoid the closure: “We have worked hard to avoid this, but sadly there is no economic alternative.”
It has not given a number for the jobs affected.
A wind-down of up to two years after December
The site will not close overnight. Once commercial work ends, Impala says it will begin “a demobilisation and decommissioning transition period over the next 18 to 24 months”.
Some staff will stay on for that work, the firm added: “We will retain a core number of employees for this work during this period.”
It put the decision down to “the wider global geopolitical backdrop, fuel market economics, and customer demands”.
A former refinery site, and a fire in July
The terminal sits on the site of a former oil refinery at Robeston West, storing and distributing petroleum products. It operated as the Puma Energy terminal before it became part of Impala.
In July, a fire at the terminal involving a decommissioned oil tank led to a major incident being declared, later stood down.
MorGen hydrogen plant not affected, says Impala
Impala says the decision does not affect the MorGen Energy green hydrogen scheme planned for the site.
MorGen said in March that the £50m plant would be running by early 2028, producing about 2,000 tonnes of low-carbon hydrogen a year.
The developers said it would create 60 jobs during construction and up to 10 permanent roles once complete, and that it is backed by a 15-year government revenue guarantee.
What next for the rest of the site
Impala says it has launched a review of what the rest of the site could be used for.
Its spokesperson said the company was “conscious of the history of the site and [has] launched a review to assess future uses for it”.
The review “does not solve the present issue”, Impala admitted, but “aims to preserve the site’s legacy for future generations”.
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