Azernews.Az

Azerbaijan's state energy firm SOCAR has presented to German E.ON Ruhrgas preliminary data required to draft a feasibility study of the project aiming to overhaul the gas supply system of Baku, a SOCAR source told the Baku-based Trend news agency. SOCAR’s state-controlled gas supplier Azerigas is engaged in addressing issues of transportation and sale of gas in Azerbaijan.

According to the source, German experts were provided with data on the state of the gas distribution system of Baku and the Absheron Peninsula, the development plan of Baku, as well as forecasts on SOCAR’s gas production growth for the next 10, 20 and 30 years.

"The E.ON company will analyze the data and its specialists will be provided with additional information next year, if necessary," the source said.

Work on the feasibility study will take about three months - February-April 2012. In May, the preliminary version of the feasibility study will be presented to SOCAR and Azerigas for further conclusions and recommendations. In June, E.ON will present to SOCAR its final version, according to SOCAR.

The project aims to minimize gas losses, expand the existing gas distribution system, and envisions its reconstruction and renewal, while taking into account population growth and sustainable industrial development as well as meeting the increased demand for gas in the future.

The gas supply system of Baku and Absheron Peninsula, which encompasses the city’s surrounding regions, is the largest in the country and it serves about 650,000 customers. 90 percent of the existing infrastructure must be renewed for its reconstruction and modernization.

The project estimate may amount to a total of 800-900 million euros.