Azerbaijan, Baku, July 16 /Trend E.Ismayilov/
German E.ON agrees the feasibility of the project of reconstruction and modernization of the gas network of Baku and Absheron peninsula with the State Oil Company of Azerbaijan (SOCAR), a source at the company SOCAR told Trend on Monday.
He noted that part of the feasibility study directed to to the relevant structures of SOCAR, which present feedback and recommendations, after which the document is amended and supplemented.
"The works are nearing completion and E.ON will present an edited version of feasibility study before the end of this month," the source said.
The source noted that, work on the preparation of construction documents will begin upon completion of the feasibility study.
"At the same time some kind of physical work can be carried out in parallel with the design work," the source said.
The delay in the preparation of feasibility studies related to the adoption of the SOCAR decision on taking into account all the possible variants (lines) of gas supply of the capital. In particular, the possibility of gas supplies in the distribution system of Baku from the same point will be taken into account during the preparation of the feasibility study. This is necessary in view of SOCAR which plans to build a new gas processing plant as part of a complex in the country for oil and gas processing and the production of petrochemical products (OGPC).
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.
Baku and Absheron Peninsula's gas system is the largest in the country and covers about 650,000 customers. Some 90 per cent of the existing infrastructure should be updated for its reconstruction and modernisation.
A total of 800-900 million euros may be spent for the project.