ILSA DEMARCHE TO TURKEY

UNCLAS ANKARA 001988 SIPDIS SENSITIVE STATE ALSO FOR EB/CBED, EUR/SE, NEA/NGA AND EB/ESC NSC FOR BRYZA AND MCKIBBEN E.O. 12958: N/A TAGS: ETTC ENRG AU TU IR SUBJECT: ILSA DEMARCHE TO TURKEY REF: STATE 68432 ¶1. (SBU) A/DCM presented reftel points April 5 to MFA Deputy Director General for Energy Hakki Akil, pointing out that development of a pipeline to carry Iranian natural gas to Europe via Turkey would raise serious issues related to both U.S. law (ILSA) and U.S. policy. Per reftel, A/DCM stressed that pursuit of such a project could raise questions about U.S. support for Turkish gas exports to Europe. ¶2. (SBU) Akil emphasized Turkey's long-standing policy of working closely with the USG to to build an East-West energy corridor and to make Turkey an energy hub, and said his government was committed to continuing that policy. He said there was no intention to build a specific pipeline to carry Iranian gas to Europe; the Nabucco project ends at Turkey's border with Bulgaria (i.e., does not continue through Turkey to Iran). In fact, the GOT is working hard to promote alternative sources of gas to Europe, including not only Azeri gas but also Turkmenistan gas via the Shah Deniz pipeline. ¶3. (SBU) The problem, per Akil, is that -- if European customers in the end decide to buy Iranian gas -- it will be politically difficult for Turkish authorities to refuse to let the gas transit their country. The solution, he reiterated, is to encourage alternative suppliers so that the Iranians are squeezed out of the picture. To this end, he has been urging Statoil, SOCAR, and BP, as well as the Egyptians and Iraqis, to study the European gas market and try to market their gas in that market. EDELMAN