Azerbaijan, Baku / Trend corr I. Khalilova / On the basis of a memo signed in April 2007, the South-Korean company KEPKO is proceeding in designing a feasibility study for the construction of a private gas-fired plant in Azerbaijan, the head of the Investment Policy Department of the Azerbaijan Economic Development Ministry, Askar Alakbarov, reported on 27 August.
"The feasibility study will be developed in two to three months," Alakbarov said.
A site for the plant has not been determined yet. There are plans to construct only one plant now capable of up to 700 MW.
In practice such projects require some $1bln in investment, Alakbarov said.
Most electric stations in Azerbaijan work on fuel oil. Up to 1 January 2007 the stations were worked on imported gas. On 1 January Azerbaijan ceased importing gas from Russia due to high prices and switched the stations to fuel oil. Azerbaijan produces fuel oil in Baku oil-refineries.