Azerbaijan, Baku, Dec. 16 / Trend E. Ismailov /
The company SOCAR (State Oil Company of Azerbaijan) has presented to the German E.ON the primary data required to prepare a feasibility study of project on the reconstruction of gas supply system in Baku and Absheron peninsula, source in SOCAR told Trend.
Azerigas Production association of SOCAR Company is engaged in issues of transportation and sale of gas in Azerbaijan.
According to the source, the German experts were provided with data on the state of the gas distribution system of Baku and Absheron peninsula, the development plan of Baku, as well as forecasts about the prospects of SOCAR gas production growth for 10, 20 and 30 years.
"The company E.ON will analyze the data and its specialists will be provided by additional information next year, if necessary," the source reported.
Work on the feasibility study will take about three months (February-April 2012) to complete. In May, the primary version of the feasibility study will be presented to SOCAR and Azerigaz for making conclusions and giving recommendations. In June, E.ON will present to SOCAR the final version of feasibility study, the source said.
The project provides for minimizing gas losses, expanding the existing gas distribution system, its reconstruction and renewal, taking into account population growth and sustainable development of industry, as well as meeting the increased demand for gas in the future.
The gas system of Baku and Absheron peninsula is the largest in the country and it serves for about 650,000 customers. For its reconstruction and modernization 90 percent of the existing infrastructure must be updated.
Total price of the project can reach 800-900 million euros.