Azerbaijan, Baku, June 5 / Trend E. Ismailov /
SOCAR (State Oil Company of Azerbaijan) is seeking resources for funding the project of reconstruction and modernization of the gas distribution system of Baku and the Absheron Peninsula, the head of the "Azerigas" Production Association (PA) Akbar Hajiyev told journalists on Wednesday.
According to him, the project's implementation will begin as soon as the sources for its funding have been defined.
"Currently works on fundraising are being carried out at SOCAR. Works under this project will begin as soon as the sources of its funding have been defined," Hajiyev said.
In total, the project may require investments in the amount of 1.2 billion euros, and it is planned to be fully implemented by attracting foreign investments. The reconstruction process will take at least three years after the works begin.
The project covers the minimization of gas loss, expansion and renovation of the existing gas distribution system with the account of the population growth and sustainable development of the industry, as well as meeting the increased demand for natural gas in the future.
The gas system of Baku and Absheron peninsula is the largest in the country and covers more than 650,000 users.
90 percent of the existing infrastructure needs to be updated for its modernization.