(Releads with TANAP inauguration)
By Orhan Coskun and Humeyra Pamuk
ANKARA, March 17 (Reuters) - Turkey inaugurated a $10billion project to pipe Azeri gas to Western markets on Tuesday,forging ahead with a plan which could help Europe reduce itsdependence on Russian energy even as Moscow touts its ownalternative.
The Trans-Anatolian gas pipeline (TANAP) aims to carry 16billion cubic metres of gas a year by mid-2018 from Azerbaijan'sShah Deniz II field in the Caspian Sea, one of the world'slargest gas fields developed by a BP-led consortium.
The 1,850 km (1,150 mile) pipeline will stretch fromTurkey's border with Georgia to Greece and is key to Turkey'sambition to cut its own dependence on Russian gas.
Ankara raised its stake in the project to 30 percent lastyear. Azeri state-oil firm SOCAR holds 58 percent, while BP hasthe remaining 12 percent.
"We plan to establish Turkey as the energy distribution hubof the region," President Tayyip Erdogan said at a groundbreaking ceremony in the northeastern city of Kars.
Facing objections from the EU, Russia abandoned its $40billion South Stream project through which it aimed to delivergas to Europe while bypassing Ukraine. Moscow surprised theblock by proposing a new undersea pipeline, dubbed "TurkishStream".
Ankara's response to the project, which envisages piping gasto a hub on the Turkish-Greek border, has been lukewarm. Energyofficials have said TANAP remains their priority.
"TANAP has a special importance because of its route and itsgoal and is not an alternative project to others and there isnot an alternative to it," Erdogan said.
Initially, Turkey will buy the first 6 bcm per year of gasfrom TANAP. A further 10 bcm will be delivered to Europe once itis connected to the Trans Adriatic Pipeline (TAP) by 2020. By2023, TANAP's capacity will rise to 23 bcm per year and then to31 bcm by 2026, according to project executives.
Caught off guard by Russia's surprise decision to ditchSouth Stream and its proposal to work with Turkey to build analternative route, the European Union has repeatedly urgedMoscow not to exclude it from the plans.
"When we speak about some big supplies for Europeancustomers, you cannot adopt such a decision without talking tothem, without talking to the EU and without talking to theEuropean Commission," Maros Sefcovic, the European Commission'sVice President in charge of Energy Union said at a pressbriefing in Ankara on Monday evening. (Additional reporting by Jonny Hogg; Editing by Nick Tattersalland Susan Thomas)
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