Azerbaijan, Baku, Nov.4 / Trend, S. Aliyev /
"Azerigaz" Production Unit of the State Oil Company of Azerbaijan (SOCAR) and the German E. ON Ruhrgas AG signed a contract to prepare a feasibility study for the reconstruction of system of gas supply to Baku and Absheron Peninsula, SOCAR said on Thursday.
The contract envisages that the E. ON Ruhrgas will prepare a feasibility study required for minimizing gas loss, expansion of the existing gas distribution system given increase of population and sustainable development of industry, meeting the increased demand for gas in the future, its reconstruction and renovation.
The Feasibility study will be prepared in accordance with norms and standards adopted and used in Germany and other Western countries.
Under the contract, the feasibility study should be prepared within six months.
Baku and Absheron Peninsula's gas system is the largest in the country and covers about 650,000 subscribers. Some 90 percent of the existing infrastructure should be updated for its reconstruction and modernization.
A total of 800-900 million euros may be spent for the project.