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German specialists to specify data within big gas project in Azerbaijan

Oil&Gas Materials 23 April 2012 15:01 (UTC +04:00)

Azerbaijan, Baku, April 23 / Trend E. Ismayilov /

German E.ON specialists will specify the registration of gas supplies to Baku's distribution system from one point as part of the preparation of a feasibility study of the reconstruction and modernisation of distribution network of the capital and the Absheron Peninsula, a source at SOCAR told Trend on Monday.

This opportunity can be considered by the German company in connection with SOCAR's plans to build a new gas processing plant within the establishment of the Oil Gas Processing and Petrochemical Complex (OGPC) in the country. The whole gas will be received by the new plant, processed and delivered to the distribution network for consumer use in a purified form, the source said.

"But SOCAR will take a final decision in this issue and registration of these plans within the feasibility study]," the source said.

At present gas is supplied to the capital from three directions - Garadagh, Hovsan and Zikh, as well as seven different points.

It is planned to construct the oil and gas processing plant with a capacity of 10 million tons and 10 billion cubic meters per year within the OGPC project. The project also includes petrochemical production aimed at creating about two million tons of base polymers annually.

According to a source, E.ON experts have recently arrived in Baku to collect data on the communication system of the capital. "All the necessary additional data were presented to the German experts," he said.

Previously E.ON has submitted all the information necessary to prepare a feasibility study. In particular, the forecasts on gas production volumes in the country, a perspective plan for development of the capital and other technical indices and materials are among the submitted materials.

E.ON will present the final document to SOCAR in June 2012.The project envisages the reduction of gas losses to a minimum, the expansion of the existing gas distribution system, its reconstruction and renewal taking into account population growth and sustainable development of the industry, as well as to meet the increased demand for gas in the future.

The gas system of Baku and the Absheron peninsula is the largest one in the country and covers about 650,000 subscribers. About 90 per cent of the existing infrastructure must be renewed for its reconstruction and modernisation.

It is estimated that around 800-900 million euros may be spent for the project's implementation.

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