Search

 

Cablegate: Energy Secretary Bodman Meets with Turkish Energy Minister

VZCZCXRO5435
RR RUEHAG RUEHAST RUEHBC RUEHDA RUEHDBU RUEHDE RUEHDF RUEHDIR RUEHFL
RUEHIK RUEHKUK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR
RUEHVK RUEHYG
DE RUEHIT #1014/01 3301418
ZNR UUUUU ZZH
R 261418Z NOV 07
FM AMCONSUL ISTANBUL
TO RUEHC/SECSTATE WASHDC 7696
INFO RUCNCIS/CIS COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 7289
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNIRA/IRAN COLLECTIVE
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
RUETITH/ODC ANKARA TU
RHMFIUU/DEPT OF ENERGY WASH DC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 03 ISTANBUL 001014

SIPDIS

SENSITIVE
SIPDIS

EEB FOR A/S SULLIVAN
EUR FOR DAS BRYZA
SCA FOR MANN
DO FOR HEGBURG
USTDA FOR DAN STEIN

REF: ANKARA 2720
BAKU 1049

E.O. 12958: N/A
TAGS: ENRG EPET AJ IR IZ KZ RS TU
SUBJECT: Energy Secretary Bodman Meets with Turkish Energy Minister
Guler

Sensitive but Unclassified. Please protect Accordingly.

1. (SBU) Summary: On November 15, U.S. Energy Secretary Samuel
Bodman met Turkish Energy Minister Hilmi Guler in Istanbul. They
reaffirmed the U.S.-Turkey strategic energy vision for the
development of Caspian resources and delivery systems to bring them
to market, including the Trans-Caspian pipeline. Bodman informed
Guler of progress within the U.S. government to approve the
bilateral agreement with Turkey on the Peaceful Uses of Nuclear
Energy. Bodman urged Guler to move forward in negotiations with the
Azeri government to purchase additional gas volumes. Guler defended
the pricing mechanism in the gas agreement with Greece and Italy,
which is opposed by Azerbaijan, but said striking a deal with the
Azeris was his "number one priority". Guler reaffirmed his support
for the U.S. Department of Energy-sponsored Clean Energy Conference
to be held in January 2008 in Istanbul. Guler sought and received
U.S. support for Turkey's bid to host the World Energy Congress in
2011. Bodman reaffirmed U.S. support to bring the PKK to justice.
Bodman reiterated USG policy on Iran and cautioned against energy
deals with Iran. End summary.

------------------------
NEGOTIATING WITH AZERIS
------------------------

2. (U) Bodman noted the importance of Turkey as a transit state for
natural gas to Europe. He commended Turkey's helpful, pragmatic
approach to the Baku-Tbilisi-Ceyhan oil pipeline opened in June 2006
and recommended Turkey take a similar approach in negotiations with
Azerbaijan for gas volumes for the Turkey-Greece-Italy pipeline.

3. (SBU) Guler said reaching an agreement on gas issues with
Azerbaijan was his "number one priority". Guler repeated arguments
that we have heard before defending the transit terms of the
Turkey-Greece-Italy intergovernmental agreement (reftel A) to which
Azerbaijan, the key supplier, is not a party. (Note: According to
the agreement, Turkey will receive 15 percent of total gas transited
from Azerbaijan to Greece at a "net back price". Simply put, the
price of gas would be calculated by the end delivery price minus the
cost of transportation across Turkey.) Guler went further than we
have heard previously to defend his position. He said that Turkey
had consulted and received agreement from both Ilham and Natiq Aliev
(Azerbaijan's President and Energy Minister, respectively) before
completing the intergovernmental agreement. This assertion is
refuted by Embassy Baku reporting in reftel B. Guler claimed that
EU Energy Commissioner Piebalgs also approved of Turkey's net-back
pricing scheme. Guler said he was hopeful a gas-supply agreement
with the Azeris could be reached soon. Bodman said he would not
weigh in on the details of the commercial arrangements but said he
hoped negotiations could be concluded swiftly.

---------------------------
TURKEY'S NUCLEAR AMBITIONS
---------------------------

4. (SBU) Bodman told Guler that on November 15, he and Secretary
Rice had recommended to the President to forward to Congress the
bilateral agreement with Turkey on the Peaceful Uses of Nuclear
Technology (also know as the "123 Agreement"). Bodman explained
that once the agreement reaches Congress a 90-day clock begins, and
if Congress does not act, the agreement takes force.

5. (SBU) Guler said the development of nuclear power wll help meet
Turkey's growing demand for energy. He thanked Bodman for the good
news on the 123 greement and said he was looking forward to U.S.company investment in Turkey's civilian nuclear poer sector. In
response to Secretary Bodman's invtation to join the Global Nuclear
Energy Partnerhip (GNEP), Guler said Turkey would consider theoffer and was looking favorably toward joining.

---------------------------------------
TURKMAN GAS AND TRANS-CASPIAN PIPELINE
---------------------------------------

ISTANBUL 00001014 002 OF 003

6. (SBU) Bodman relayed some of the details of his meeting with
Turkmen President Berdimuhamedov on November 14 (septel) to Guler.
Bodman said a Trans-Caspian pipeline (TCP) would benefit
Turkmenistan, Turkey and the broader region. He said the Turkmen
president listened to the merits of the project but appeared
"reticent" to make a commitment to its development. Bodman urged
Guler personally to become more engaged with Turkmenistan and help
to develop the TCP.

5. (SBU) Guler agreed and noted that Europe needs Turkmen gas at
least as much as Turkey. He said a delay in developing this source
encourages "other sources" (we believe he meant Russia) to continue
to increase market share. Guler said that in addition to
Turkmenistan, Turkey sees Iraq and Azerbaijan as important gas
suppliers. He said that all three countries need investment to
realize the additional volumes demanded by consumers. He added the
U.S. could play a major role in getting any one of these three
countries to move up their timeline for gas field development.
Guler urged more U.S. involvement in regional gas development and
recommended countries in the region send presidential delegations to
Turkmenistan to impress upon them the importance of increasing gas
output. He said Turkey would do this. He hinted that Russia and
Iran are competitors in the same market and are waiting to see what
projects materialize before making their decisions on increasing gas
supply to Europe. Guler said Russia is still considering building a
"Blue Stream II" (a pipeline that would bring natural gas from
Russia to either the Balkans or Israel through Turkey). Guler said
Turkey is continuing to develop its plans with Israel to build a
so-called "peace pipeline" that would bring oil, gas, water,
electricity, and fiber optic cables to Israel. (Note: According to
preliminary feasibility studies conducted by Calik Energy, oil and
gas pipelines are more profitable than water and electricity.
Telecommunications has not yet been studied.)

------------------------
CLEAN ENERGY CONFERENCE
------------------------

6. (U) Guler reaffirmed his support for the Department of Energy's
Clean Energy Conference, which is scheduled to take place in
Istanbul at the end of January. He said he would like to establish
some joint working groups on energy efficiency and energy savings.
Bodman said we would be happy to share information with the Ministry
of Energy. He also invited Guler or others from the Energy Ministry
to Colorado to visit the U.S. Department of Energy's Renewable
Energy Laboratory that is doing research on solar, wind and
biofuels. Bodman also proposed inviting experts from this lab to
participate in the conference in January.

----------------------
WORLD ENERGY CONGRESS
----------------------

7. (U) Guler requested U.S. support for Turkey's candidacy to host
the World Energy Congress in 2011 in Istanbul. The vote will take
place in Uruguay at the end of November. Bodman said we would be
supportive.

----------------------
PKK AND WAR ON TERROR
----------------------

8. (SBU) Bodman thanked Guler for Turkey's steadfast support in the
War on Terror. He noted U.S. designation of the PKK as a terrorist
organization and pledged U.S. government support to "bring the PKK
to justice". Guler responded that terrorism knows no national
boundaries and that Turkey and the U.S. are acting together to fight
it.

-----------------
CAUTIONS ON IRAN
-----------------

ISTANBUL 00001014 003 OF 003

9. (SBU) Secretary Bodman reiterated to Minister Guler the U.S.
policy on Iran and expressed concerns about Turkey's energy
agreement with Iran. The Secretary noted that Iran was not a
reliable partner and cooperating with them could create problems for
Turkey in the long term. Guler acknowledged that the GOT was aware
of and respected U.S. concerns, but noted that Turkey must have
alternatives to meet increasing demand in the future.

10. (U) This message was cleared by Secretary Bodman.

© Scoop Media

 
 
 
World Headlines

 

New IPCC Report: ‘Unprecedented Changes’ Needed To Limit Global Warming

Limiting global warming to 1.5°C will require “far-reaching and unprecedented changes,” such as ditching coal for electricity to slash carbon emissions, says a special report that finds some of the actions needed are already under way, but the world must move faster… More>>

ALSO:

Jamal Khashoggi: UK, France, Germany Join Calls For Credible Investigation

Germany, the United Kingdom and France share the grave concern expressed by others including HRVP Mogherini and UNSG Guterres, and are treating this incident with the utmost seriousness. More>>

ALSO:

MSF Not Wanted: Nauru Government Shows Continued Callousness

The Nauruan Government’s decision to ask Doctors Without Borders to immediately leave shows continued callousness towards asylum seekers desperately seeking a safe place to call home, Green MP Golriz Ghahraman said today. More>>

ALSO:

Sulawesi Quake, Tsunami: Aid Response Begins

Oxfam and its local partners are standing by to deploy emergency staff and resources to the Indonesian island of Sulawesi, as an estimated 1.5 million people are thought to be affected by the massive earthquake and tsunami that hit on Friday. More>>

ALSO:

Decriminalising Same-Sex Relationships: UN Rights Chief Applauds Indian Decision

“This is a great day for India and for all those who believe in the universality of human rights," Bachelet said. "With this landmark decision, the Indian Supreme Court has taken a big step forward for freedom and equality...” More>>

ALSO: