VKG To Build Fuel Production Terminal
Oil shale processing giant Viru Keemia Grupp (VKG) has announced that it will soon begin construction of a 250-million-euro diesel production facility, a move that mirrors the plans of its chief competitor, Eesti Energia.
The plant, which should be completed by 2016, will employ 600 people, Eesti Päevaleht reported.
"Talks with the designer and contractor to build a plant costing 250 million euros have now come to an end, and after a few weeks we will make a choice between two options," said VKG chairman Priit Rohumaa.
State-owned energy firm Eesti Energia is already producing lower grade liquid fuels from shale, but hopes to step up its operation with the opening of its Enefit-280 plant in Narva next year.
"We tried to negotiate with Eesti Energia to build a plant together, but the views of our businesses were too different," said Rohumaa.
Eesti Energia says it plans to be able to produce 20,000 to 30,000 barrels of liquid fuels per day by 2016, including diesel and unrefined gasoline.