By Afet Mehdiyeva and Lada Evgrashina
BAKU, Jan 23 (Reuters) - British major BP said it istargeting 2018 for the first gas from the second phase ofAzerbaijan's Shah Deniz gas project, a major development aimedat reducing European dependence on Russia for its energysupplies.
Output from Shah Deniz II is expected to reach 16 billioncubic metres (bcm) of natural gas per year, with 10 bcmearmarked for Europe and 6 bcm for Turkey.
Shah Deniz I, which has been pumping gas since 2006, hasproduction capacity of 8 bcm.
Shah Deniz, Azerbaijan's biggest gas deposit which is beingdeveloped by BP, Statoil, Azeri state energy firm SOCARand others, is estimated to contain 1.2 trillion cubic metres ofgas.
If all necessary agreements are achieved, "we will target2018 for first gas (from Shah Deniz II)," Al Cook, BP-Azerbaijanvice-president, told a news conference.
Officials from SOCAR had said the second phase was expectedto start by the end of 2017, but SOCAR head Rovnag Abdullayevsaid in December the gas would reach European markets "notearlier than the second quarter of 2018."
The Shah Deniz consortium is expected to choose by mid-2013 whether to transport Shah Deniz II production via theNabucco-West pipeline or the rival Trans-Adriatic pipeline(TAP).
After a deal signed earlier this month the consortium ownsstakes in both pipeline projects.
Cook welcomed ratification by Azerbaijan and Turkey of thelinked Trans-Anatolian (TANAP) gas pipeline agreement, whichwill bring Azeri gas through Turkey to the edge of Europe.
TANAP will connect with either Nabucco West into Austria orTAP, taking a more southern route via Greece and Albania intoItaly to reach customers in the European Union.
Cook said the Shah Deniz consortium planned to invest $10billion on the Shah Deniz II project.
"Over the next 18 months, in 2013 and the first half in 2014Shah Deniz plans to make commitments to spend $10 billion onthis project. BP on behalf of the consortium plans to makecommitments to spend $10 billion," he said.
TAP's shareholders are EGL AG of Switzerland,which has 42.5 percent, Norway's Statoil (42.5 percent) andGermany's E.ON Ruhrgas (15 percent).
Nabucco's six shareholders are Austria's OMV AG,Germany's RWE AG, Hungary's MOL through itsgas pipeline operator FGSZ, Turkey's Botas, BEH of Bulgaria andRomania's Transgaz.
BP (BP.)