Azerbaijan, Baku, Feb. 13 / Trend E. Ismayilov
German E.ON has launched work over development of feasibility study (FS) of the project for reconstruction of gas supply system in Baku and Absheron peninsula, the source in SOCAR (Azerbaijan State Oil Company) told Trend on Monday.
Earlier, E .ON received data needed to develop the feasibility study, he added. In particular, forecasts in terms of gas production in the country, a perspective plan for development of the capital and other technical indicators and materials were presented.
"The company will prepare a document within three months, and will present a preliminary version of feasibility study to SOCAR in May," the source said.
Based on SOCAR recommendations the E. ON is expected to submit the final version of document in June, the source added.
The project enables to reduce gas losses to a minimum, to expand the existing gas distribution system, to reconstruct and renew it, taking into account population growth and sustainable development of the industry, as well as meeting the increased demand for gas in the future.
The gas system of Baku and Absheron peninsula is the largest in the country and covers about 650,000 subscribers.
Ninety percent of the existing infrastructure should be renewed for its reconstruction and modernization.
General expenses for the project may vary from 800 to 900 million euros.