Azerbaijan, Baku, May 31 /Trend E.Ismayilov/
The process of preparing a feasibility study (FS) of the project of reconstruction and modernization of the gas distribution system of Baku and Absheron peninsula will be completed by September, the head of the production association Azerigas of State Oil Company of Azerbaijan (SOCAR) Akbar Hajiyev, told reporters on Thursday.
Feasibility study is developed by German E.ON.
"Tender for the development of detailed engineering of the project will be announced after the preparation of the FS. It will allow to begin the work on the reconstruction of the gas distribution system in the first half of the year," Hajiyev said.
According to the PA, the process of reconstruction will be implemented during several years and require investments of around one billion euro. Funding for the project is planned to provide through borrowed funds.
The project provides 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 meeting the increased demand for gas in the future.
The gas system of Baku and Absheron peninsula is the largest in the country and covers about 650,000 subscribers. Ninty percent of the existing infrastructure must be renewed for its reconstruction and modernization.