OBERLIN, La. (AP) — The Allen Parish Police Jury has agreed to lease more of the former Arizona Chemical property in Oakdale to a Texas-based company for a $100 million refinery.

The company, Virtual Engineering Operations, plans to a build refinery to process 20,000 barrels a day of crude to produce diesel fuel for farmers, jet fuel and heating oil.

The American Press reports the company hopes to increase its production to 40,000 barrels a day in the future with construction of a pipeline.

VEOPS President J. Craig Harrington said Tuesday the additional acreage is needed for a railroad track. The rail system is needed to unload products from 120 rail cars expected to arrive at the facility.

Construction on the facility is expected to begin in the next two to three months.