Energy, Estonia, EU – Baltic States, Gas, Legislation

Once completed, the device is expected to boost Eesti Energia's output of liquid fuels by 10%.

"Under the agreement signed with Amec Foster Wheeler, the cost of the design works is 810,000 euros," Eesti Energia spokesman Kaarel Kuusk told BNS.

He said the cost of the device itself will be established in a tender for the contract to build it. Before that a positive investment decision has to be made.

Kuusk said seven internationally well-known design companies qualified for the tender that was announced last year.

"In addition to the best price offer, long-term expertise in gas processing and a team with strong professional credentials spoke in favor of Amec Foster Wheeler," Margus Vals, the Eesti Energia board member responsible for projects, technology and new business said.

Vals said adding value to oil shale in a more effective way was one of the priorities of Eesti Energia.

"With today's prices of liquid fuel it doesn't make sense to set up a capital intensive refinery to produce motor fuel from shale oil. With the device for producing gasoline from oil shale gas we have chosen the solutions from the concept of refinery which are competitive in the present market situation and will increase the amount and quality of shale oil," Vals said.

The device will be designed with fitting it into the existing Enefit140 and Enefit280 oil plants in mind. The oil shale gasoline to be thus produced would be sold to the chemical industry as raw material and to refineries for refining into motor fuel.

Works to design the equipment are to last until fall 2016, the investment decision is to be made at the beginning of 2017 and the equipment is expected to be operational in 2018, provided that a positive investment decision is made.

Eesti Energia produced 265,000 tons of liquid fuels and 0.9 terawatt-hours of shale oil gas in 2014. It produced 239,000 tons of liquid fuels in the first nine months of 2015. At present the main users of liquid fuels produced by it are heat producers and producers of ship fuel.