Cablegate: Energy Secretary Bodman and Uk Energy Minister Wicks

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R 191701Z DEC 07
FM AMEMBASSY LONDON
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UNCLAS SECTION 01 OF 02 LONDON 004632

SIPDIS

SENSITIVE
SIPDIS

REF LONDON 3999

E.O. 12958: N/A
TAGS: ECON EPET ENRG UK
SUBJECT: ENERGY SECRETARY BODMAN AND UK ENERGY MINISTER WICKS
DISCUSS CASPIAN, CLIMATE CHANGE

1. (SBU) Summary: Energy Secretary Bodman met his UK counterpart
Malcolm Wicks to discuss Caspian energy, climate change
and nuclear energy issues on November 20. The two agreed on the
need
for coordinated engagement in the region - particularly with
Turkmenistan. End Summary

Caspian Energy
--------------

2. (SBU) Secretary Bodman, accompanied by Ambassador Tuttle,
described
to Minister Wicks the short meeting he had with Turkmenistan
President
Berdimuhamedov the previous week in Ashgabat. The Turkmenistani
President
was engaged on market-opening issues, but left the impression that
needed
reforms and changes were not imminent and that the relationship
with Moscow was still of utmost importance. For instance, Secretary
Bodman
told Wicks, Berdimuhamedov raised three times that Turkmenistan
is only interested in selling gas at the border. Secretary
Bodman stressed that he wanted to see an opening of Turkmen-
Western energy trade, with a TransCaspian pipeline, and the
participation of Turkmen gas in the Turkey-Greece-Italy and Nabucco

pipelines.

3. (SBU) Wicks described a slightly different attitude when he
visited Ashgabat in September. Wicks found the Turkmen,
including Berdimuhamedov, actively desirous of Western
participation in Turkmenistan. Wicks stressed that the West and
the EU member states needed to succeed in opening the Southern
Corridor (gas), but questioned whether Russia would permit it to
happen. Wicks also conveyed a conversation he had with
Berdimuhamedov in which the latter dismissed U.S. and western
companies visits to Turkmenistan as "all theory", and contrasted
it to the Chinese who speak as one voice and come in with
practical projects.

4. (SBU) Despite these concerns, Wicks is optimistic about
"beginning a dialogue" with Turkmenistan, and sees an improvement
in their relations with Azerbaijan. In fact, he said,
Turkmenistan is more focused on a bilateral Caspian agreement
with the Azeris than a five-country agreement. The British also
pointed to the Turkmen contract with China as proof that they are
interested in counter-balancing Russia. Wicks said the UK agrees
with U.S. thinking on the necessity for a merger of gas gathering
systems. During Wicks' visit to Turkmenistan they agreed to a
series of visitors programs; the first of which will have key
Turkmen energy officials visiting Scottish offshore facilities
in February. Richard Marriott, International Energy Advisor
to Wicks, said the UK will have to bring in U.S. financial
experts conversant on Production Sharing Agreements (PSAs) because
the UK does not use them. Wicks and Bodman agreed to coordinate on

visits so as to maximize resources and opportunities.

5. (SBU) On European thinking in the Caspian, Wicks told Secretary
Bodman that the European Commission is engaged, but Germany and
other
Member States have their own contracts with Gazprom so it will be
difficult for the EU to speak with one voice. Marriott described
meetings with energy companies (reftel) who proposed an
incremental approach: creating a merged gathering system for
East Caspian gas - a low risk/low profile way to start the process
of getting Turkmen gas to the West - as opposed to a big shore-
to-shore pipeline which would be high-risk and a lengthy project.

Climate Change
--------------

6. (SBU) Secretary Bodman described the U.S. goal of getting an
agreement on Climate Change no later than next summer, and
stressed the key role of the Major Economies Meetings as part of
the overall UN process. He also stressed to Minister Wicks the
need for developing country participation by noting that even
if the U.S. were to completely eliminate all emissions
immediately, it would be insufficient to meet global carbon
reduction
goals. Wicks agreed on the importance of China and India's roles
in reaching any agreement, and said technology is key to any
post-2020 settlement.

Nuclear

LONDON 00004632 002 OF 002

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7. (SBU) Wicks mentioned the importance of nuclear technology in
the climate change solution, and described a bill HMG will put forth

in January on this issue. The UK government is currently in a
"re-consultation" period with the British public on nuclear
issues, so cannot move forward - or engage in the Global Nuclear
Energy Partnership - until that process finishes early next year.

This message was cleared by Secretary Bodman's office.

TUTTLE

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