The Welsh secretary has said discussions with Tata Steel are ongoing, following reports the company is seeking compensation over grid connection delays to its new Port Talbot electric arc furnace.

Speaking at a Labour conference event in Liverpool, Stephen Kinnock said he was "aware that the delays to the electric arc furnace have been very challenging for Tata".

He said the UK government would "of course give careful consideration to any proposal that they might have for financial support".

But he added that it would not be appropriate to comment on "commercial discussions".

Speaking at a conference fringe event, the Aberafan Maesteg MP was asked about reports that Tata Steel is seeking compensation after warnings that constraints on national grid capacity could delay the new electric arc furnace until at least late 2028.

Kinnock said delays to the electric arc furnace had been "very challenging" for Tata Steel but stressed the company was in regular talks with the government.

"We will give careful consideration to any proposal that they might have for financial support," he said.

He added that the government was already investing £500m in the project and said ministers were committed to delivering it "working in partnership with the steel industry".

Kinnock declined to discuss compensation talks, saying it would not be appropriate to comment on "commercial discussions".

He acknowledged the project was being held up by grid connection issues.

"The challenge we have with the electric arc furnace is the grid connection," he said, adding that the government was working with energy network operators to get the project moving "as quickly as possible".