The World Bank has again postponed consideration of a $15 million project designed to help Azerbaijan detect and repair leaks in the Azerigas distribution network.
The bank’s Board of Executive Directors is now expected to consider the project on Nov. 27, after earlier target dates of April 23 and Aug. 6, according to Vesti Baku.
Annual Losses Estimated at 160 Million Cubic Meters
World Bank documents estimate that leaks in Azerigas’ aging distribution infrastructure result in losses of about 160 million cubic meters of natural gas a year, equivalent to roughly 107 kilotons of methane. Much of the legacy system is more than 50 years old.
The bank’s analysis says about 80% of the leaks by volume could be addressed through relatively straightforward and cost-effective repairs within seven years. A complete replacement of the outdated portion of the distribution network has been estimated at about 1.526 billion manats ($898 million).
How the $15 Million Would Be Used
The proposed Azerbaijan Gas Leak Detection and Repair Facility would establish a nationwide system for identifying and fixing methane leaks. Planned work includes leak-detection and metering equipment, replacement of connectors, valves and short pipe sections, digital monitoring and staff training.
SOCAR would receive and hold the grant, while Azerigas would be the sole beneficiary and would handle day-to-day implementation. Most of the financial gains from gas saved through repairs would be reinvested in the facility to finance additional rehabilitation work.
The project remains in preparation. Moving the board date does not mean that financing has been approved or that implementation has begun.
Source: Vesti Baku. Project details: World Bank.