News Post
Russian Investors to Build Mini-Refinery in Estonia
STK Group, an Estonian company owned by Russian investors, plans to build a mini oil refinery at a cost of 75 million euros in the city of Sillamae, near Estonia's border with Russia, Estonian Public Broadcasting (ERR) reported.
Construction of the refinery is expected to be completed in 18 months to two years.
The refinery will have capacity of up to 2 million tonnes of oil per year, ERR reported, citing one of the Russian investors, Galei Nabiulin. For comparison, Lithuania's Mazeikiai oil refinery processed 8.5 million tonnes of crude in 2012.
The refinery will produce lubricants for seagoing vessels, diesel fuel, fuel oil for power equipment and other products. It is expected to create 307 jobs.
Environmental safety concerns could become an obstacle to the project. At a discussion of the environmental impact assessment of the project on Tuesday, Nabiulin said that thanks to new technology for intensive processing of heavy oil fractions, "small oil refineries are not only profitable, but also environmentally safe."
However, local residents said at the discussion that it is premature to say that the refinery will be environmentally safe until they see a detailed analysis of its environmental impact.
When asked by a representative of the Sillamae environmental service, Vladimir Mirotvortsev to provide examples of existing refineries using this technology, Nabiulin acknowledged that there are currently no refineries in the world operating on this technology, but said a similar refinery has been built in Russia's Tyumen Region and similar technology has been approved in Poland for a refinery in Jaslo, ERR reported.
SKT Group is owned by Anzor Pruidze, Galei Nabiulin and Pavel Starchenko, according to Estonia's commercial register. The firm was incorporated in Estonia in January 2012.
Pruidze has interests in trade and the construction sector in Sochi.
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