German company to develop new model of gas distribution system in Baku and Absheron
Azerbaijan, Baku, Nov. 14 / Trend , E.Ismayilov /
Azerigaz of the State Oil Company of the Azerbaijan Republic (SOCAR) will provide the German E. ON Ruhrgas AG data to develop a new model of gas distribution and prepare its feasibility study on the basis, a source in SOCAR told Trend.
The Feasibility Study will be prepared within the project of reconstruction of gas supply in Baku and Absheron peninsula.
"Azerigaz will step-by-step provide data regarding the status of the distribution network and gas industry of Baku and Absheron peninsula, monthly and annual average standards of gas supply, length of gas pipelines, as well as geotechnical data and other materials necessary for the preparation of a new model," the source said.
The Feasibility Study will be prepared on the new model basis. Further, the same parties will establish a joint venture that will address the issue of work on reconstruction and modernization of the distribution system.
The source said that the document will be completed next year. Under a contract with E. ON Ruhrgas AG, the Feasibility Study shall be prepared within six months.
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.
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.