Summary Six billion cubic metres of natural gas will go to Turkey and Georgia from 2018.
BAKU (AFP) - The consortium developing a huge Azerbaijani natural gas field signed on Tuesday a final investment clearing the way for the first deliveries to Europe and opening up a key route beyond Russia.
The Shah Deniz II consortium signed off on the final decision worth about $28 billion (20 billion euros) of investment that triggers the start of construction of a key new pipeline route from the Caspian Sea to Europe.
Six billion cubic metres of natural gas will go to Turkey and Georgia from 2018 and the rest will go to Europe from around 2019, according to the consortium which includes Britain s BP and Azerbaijan s SOCAR. The move is seen as a key step towards European ambitions of reducing energy dependence on Russia.
"Today s agreement will change the energy map of Europe," Azerbaijani President Ilham Aliyev said at the signing ceremony in the capital Baku.
"Azerbaijani gas can now reach the market that needs it the most."
British Foreign Secretary William Hague praised the agreement and thanked Aliyev for "the vital role that Azerbaijan has played in making this deal a reality."
"The announcement of the Shah Deniz II development is welcome news for Azerbaijan, for the UK and for Europe," Hague said at the ceremony.
"This adds to Europe s energy security and competitiveness by opening up a new source of gas for southern Europe," he said.
Major milestone
European Commission president Jose Manuel Barroso hailed the deal as a "strategic door opener" and said it would help boost economies across the continent. "This is a major milestone for the diversification of our energy supplies, to the benefit of European consumers and businesses," Barroso said in a statement.
In June, the Shah Deniz group -- which also includes Norway s Statoil and France s Total -- opted to build the shorter and cheaper Trans-Adriatic Pipeline (TAP) that will link up to southern Italy. They agreed to extend their cooperation until 2048 as part of Tuesday s deal.
"Shah Deniz II and the Southern Corridor pipelines will not only change the energy map, but will give customers in Europe direct access to the gas resources of Azerbaijan for the first time," said BP chief executive Bob Dudley.
That decision appeared to deliver the final nail in the coffin of a long-favoured rival project called Nabucco, which would have swung north to Austria to plug into a pipeline network that serves several northern European countries.
In September, the group sealed delivery deals with nine firms across Europe. The project will help reduce Europe s dependence on gas from Russia -- a stated EU target.
EU countries currently import 60 percent of their gas needs, with more than a quarter of that amount supplied by Russia.
Ahead of the signing ceremony rights group Amnesty International called on Britain to use the event to push for guarantees on Azerbaijan s poor human rights record and make sure the deal is "not limited to gas and profit".
"Azerbaijan has an appalling human rights record and the country is currently embarked on a particularly aggressive crackdown on freedom of expression," said Allan Hogarth, head of policy and government affairs at the London-based watchdog.
Any sign of dissent usually meets a harsh response in the resource-rich nation.
Rights groups have accused the authorities of pressing on with a ruthless campaign against opponents in the wake of Aliyev s crushing election victory in October.
