Azerbaijan, Baku, May 14 / Trend E. Ismayilov /
The issue of the reconstruction and modernisation of the gas distribution system of Baku and Absheron still remains open, a source in SOCAR (State Oil Company of Azerbaijan) told Trend.
Earlier, German E.ON prepared and presented to SOCAR with a feasibility study (FS) for the reconstruction and modernisation of the gas distribution network of Baku and Absheron which needs updating.
The source said that despite the fact the study is ready, no work has been started under this project. This can be explained by the structural reforms being held with the Azerigaz production association which resulted in the country's natural gas pipelines transfer to the balance sheet of SOCAR's Gas Export Office.
"This is the reason why the works on this project has not been started. However in spite of this, the issue of the reconstruction of the distribution network of Baku and Absheron is still relevant and remains open," the source noted.
As head of Azerigas, Akbar Hajiyev told Trend previously, in total the project may require an investment of €1.2 billion and it is planned to implement it fully by attracting foreign investments. After work begins, the reconstruction process will take at least three years.
The project provides for minimising gas losses, expansion and renovation of the existing gas distribution system taking into account the population growth and sustainable development of the industry, as well as meeting the increasing demand for natural gas in the future.
The gas system of the Baku and Absheron is the largest in the country and covers more than 650,000 subscribers. Its modernisation requires the updating of 90 per cent of the existing infrastructure.