March 2005

Viru Keemia Grupp AS (VKG) expands production of shale oil

During the expansion of the fifth gas generation station (GGJ-5), four new retorts will be added to the existing 12 KIVITER retorts, with an output of 200 tonnes of oil shale a day each. The estimated cost of the investment will be MEEK 80.

While currently the annual output of oil products amounts to about 200,000 tonnes, about 37,000 tonnes of oil products will be added on account of 230,000 tonnes of oil shale to be processed in the four new retorts. Over 70% of the total output will be exported.

At the moment, Viru Õlitööstus AS, a subsidiary to VKG, operates three oil factories: the third factory, comprising 16 retorts with an output of 50 tonnes of oil shale a day each; the fourth factory, comprising 20 retorts with an output of 50 tonnes of oil shale a day each, and the fifth factory, comprising 12 retorts with an output of 200 tonnes of oil shale a day each. In addition, there is one retort with an output of 1000 tonnes.

Of the old units, the sixth oil factory is not operated. The company has currently no plans to relaunch it. It could be reconstructed and relaunched; however, this first demands thorough analyses to assess its economic efficiency.

Additional information:

Elina Kink
Head of Public Relations, VKG
GSM +372 523 2700
E-mail: elina.kink(at)vkg.ee