Azerbaijan, Baku, March 16 / Trend E. Ismayilov /
SOCAR and German E. ON company will sign a memorandum of understanding to establish a joint venture within the project of reconstruction and modernization of the gas distribution system of Baku and the Absheron Peninsula, the head of Azerigas PU Akbar Hajiyev said.
"The memorandum will be signed in late March - early April," Hajiyev said.
This joint venture will prepare a feasibility study for the project and determine sources of financing. The contract is expected to be signed by late 2011.
The gas system of Baku and Absheron peninsula is the largest in the country. It covers about 650,000 subscribers. Roughly 90 percent of the existing infrastructure must be renovated for its reconstruction and modernization.
In total, roughly 800-900 million euros may be spent on the project.