SOCAR to attract foreign investment for implementation of large gas project
Azerbaijan, Baku, Nov. 7 /Trend E.Ismayilov /
The State Oil Company of Azerbaijan (SOCAR) is in talks to attract foreign investment in the project of reconstruction and modernization of the gas distribution network of Baku and Absheron peninsula, head of production association Azerigaz of SOCAR Akbar Hajiyev told Trend.
He noted that the German E.ON completed a feasibility study of the project and have already presented it to SOCAR. SOCAR will conduct reconstruction and modernization of the gas distribution system in accordance with the prepared feasibility study.
"E.ON has completed the work and presented the feasibility study to us. We are in talks in the frame of these documents," Hajiyev said.
Referring to the project schedule, Hajiyev said that after the start of the reconstruction process, it will take at least three years.
In total, the project may require an investment of 1.2 billion euro and it is planned to implement it through the foreign investment, Hajiyev said.
The project provides 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.
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.