BP breaks ground on Shah Deniz natural gas pipeline

British energy company BP said it started a new chapter in its relationship with Azerbaijan by holding a groundbreaking for a new gas pipeline for Europe.

Members of the Azeri government hosted their European and U.S. counterparts for a groundbreaking ceremony for the Southern Corridor, a network of gas pipelines meant to diversify a European energy sector dependent on Russia.

"Today we are not only looking back to celebrate the last two decades, but looking ahead to the next chapter in Azerbaijan's energy story as we start the building of the Southern Corridor to carry gas from the Caspian's giant Shah Deniz field to Georgia, Turkey, Greece, Bulgaria, Albania and ultimately, Italy," BP Chief Executive Officer Bob Dudley said in a statement.

BP in May said most of the contracts for a natural gas pipeline to Europe have been awarded.

Construction on the 2,100-mile pipeline is slated for January and should be completed by 2017. Shah Deniz will deliver about 560 billion cubic feet of natural gas per year, with sales scheduled for Georgia and Turkey in 2018 and the rest of Europe the following year.