Neste needs environment study for Naantali diesel

HELSINKI, Dec 21 (Reuters) - Neste Oil (NES1V.HE: Quote, Profile, Research, Stock Buzz) will be required to carry out an environmental impact study for expanding diesel production by 2011-2012 at its Naantali refinery, western Finland, the environmental authority said on Friday.

Neste has said it is considering building a new diesel line at the smaller of its two refineries in Finland with an annual capacity of 1 million tonnes, and aiming to make a decision on the investment in 2008.

The Environmental Administration Centre of Southwestern Finland said Neste's production hike at Naantali would be large enough, at about 60 percent from this year's level, that it required the refiner to carry out environmental assessments. (Reporting by Sami Torma)