SOCAR prepares for signing new contract on gas system

Oil&Gas Materials 11 January 2011 18:53 (UTC +04:00)

Azerbaijan, Baku, Jan. 11 / Trend E.Ismayilov /

The State Oil Company of the Azerbaijan Republic (SOCAR) intends to sign a contract under the project on reconstruction and modernization of the gas system of Baku and Absheron Peninsula soon, a source in SOCAR said.

A source said that the process of initial assessing the proposals submitted by European companies E.ON и RWE has been completed.

"The contract has not been signed yet. But it will be signed soon," a source said.

SOCAR intends to complete the assessment process of the project proposals presented by European companies E. ON and RWE, SOCAR PU Azerigas Akbar Hajiyev said earlier.

The gas system of Baku and Absheron peninsula is the largest in the country and covers about 650,000 subscribers. 90 percent of the existing infrastructure should be upgraded for its reconstruction and modernization.

Previously, the project cost is estimated at over one billion euro. For several years, SOCAR plans to complete the reconstruction and modernization of the entire gas system.