The government of Azerbaijan announced it established a company to manage Phase II of the Shah Deniz gas field in the Caspian Sea and its associated pipelines, UPI reported.

Azeri President Ilham Aliyev signed a decree that established a company for the management of the offshore gas basin and the South Caucasus, Trans-Anatolian and Trans Adriatic pipeline systems, the region's Trend News reported Tuesday.

The government has set aside $100 million in capital for the closed joint stock company, which is to operate under direct state authority. No name was announced.

Shah Deniz is serviced by British energy company BP and the State Oil Co. of Azerbaijan Republic. BP and SOCAR in December said they'd invest around $28 billion in developing the second stage of the offshore natural gas field.

By the end of 2019, European customers will get more than 350 billion cubic feet of natural gas per year from the so-called Southern Corridor of gas transit networks, which includes a pipeline from Azerbaijan.

The Southern Corridor adds a layer of diversity to a European gas market dependent on Russia.