Azerbaijan, Baku, April 29 / Trend E.Ismayilov /
The German company E. ON has presented to the State Oil Company of the Azerbaijan Republic (SOCAR) a concept under the development of a feasibility study on the reconstruction and modernization of Azerbaijan's gas distribution system, a source in Azerigas said on Friday.
The source said the company introduced a concept that has already been considered by specialists. The document is expected to be approved by the SOCAR head office.
Following its approval, the parties will move to the second stage, which involves a signing a contract, under which the German company will prepare a feasibility study, the source said.
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.
The project may cost $ 800-$900 million euros.