VKG Energia acquired the Fortum Termest Kohtla-Järve thermal power station

On 24 October Fortum Termest AS and OÜ VKG Energia signed a contract under which Fortum Termest sells its Kohtla-Järve installation to VKG Energia. The Kohtla-Järve installation will become the property of VKG Energia after the transaction is approved by the Competition Board.

According to Janek Parkman, Chairman of the Management Board of VKG, the operation of two thermal power stations will create synergy. ‘We can fully use the producer gas released by oil production and better administrate heat and power networks. Merging the operations of the two stations will also allow for a more flexible organisation of the reconstruction and renovation of the boilers’, he noted.

VKG Energia is drafting its investment plan for 2006, providing for the reconstruction of heat and power networks in order to reduce costs and improve operating efficiency.

All 92 employees of the Fortum Temest thermal power station will be taken over together with the plant; they will continue working in the VKG Energia team under the same conditions as before.

VKG Energia is a subsidiary of Viru Keemia Grupp AS (VKG), engaged since June 2004 in the production and sale of thermal energy in the Kohtla-Järve thermal power station, where the main fuel used is the low calorific value tail gas of shale oil production, i.e. producer gas.

OÜ VKG Energia supplies heat energy to 14,500 consumers in the Järve district of Kohtla-Järve.
The new clients from the acquisition of the Fortum Termest thermal power station include the industrial enterprises Velsicol Eesti AS and Nitrofert AS. The supply of services to the subsidiaries of VKG will continue.

The two thermal power stations employ a total of 200 people.

Further information:

Elina Kink
VKG Public Relations Manager
GSM 523 2700
e-mail: elina.kink(at)vkg.ee