ENERGY MINISTER GULER WANTS TO WORK WITH U.S.

C O N F I D E N T I A L ANKARA 006386

SIPDIS

DOE INTERNATIONAL AFFAIRS FOR CHUCK WASHINGTON

E.O. 12958: DECL: 10/20/2010
TAGS: ENRG PREL
SUBJECT: ENERGY MINISTER GULER WANTS TO WORK WITH U.S.

REF: ANKARA 6310

Classified By: CDA Nancy McEldowney. Reasons 1.4 (b) and (d).


1. (C) Summary. With BTC nearly complete, Turkish Energy
Minister Guler is looking for new ways to work with the
United States on strategic oil and gas transmission projects
in the region, as well as for more U.S. investment in
Turkey's growing domestic energy sector. He particularly
wants U.S. support for a trans-Caspian gas pipeline that
would give the EU an alternative to Iranian gas. Post
recommends that Secretary Bodman invite Guler -- who has
never visited the United States -- to Washington as part of
an effort to deepen bilateral energy cooperation. End
Summary.


2. (SBU) Energy Minister Hilmi Guler laid out his
pro-American orientation and desire to boost bilateral energy
cooperation in an October 19 meeting with the Charge. Guler
said that he expected BTC "first oil" in Ceyhan in February
2006 and that completion of the project was a triumph of
Turkey and the United States over the many who had doubted
our joint resolve. He also expected the Shah Deniz project
to be completed and operational before the end of next year.
The Minister described these as the first steps toward his
vision making Ceyhan into an energy supermarket serving the
Mediterranean and Far East.


3. (SBU) Beyond the projects underway and close to
completion, Guler saw other opportunities for cooperation in
building the Samsun-Ceyhan "bypass" pipeline and a gas
pipeline from Iraq that would use the right of way of the
existing Kirkuk-Yumurtalik oil line. He has also been
discussing with Israel the possibility of transferring oil by
tanker and pipeline from Ceyhan to India and beyond,
bypassing the Suez Canal (reftel). He is looking forward to
completion of the pipeline bringing Egyptian gas to Turkey
via Jordan and Syria. He hopes for greater U.S. commercial
interest in Turkey's energy sector, including in Turkey's
plans to build civil nuclear power plants.


4. (C) But, as he has in other meetings with U.S.
officials, including Secretary Bodman, Guler stressed that
our key joint strategic emphasis should be working with
Azerbaijan and Turkmenistan on a trans-Caspian gas pipeline.
Guler said he has so far resisted EU efforts to obtain
Iranian gas via Turkey; but it will be impossible for Turkey
to maintain this stance as the accession process proceeds.
Creating an alternative source of gas could also help
undermine Iran's nuclear ambitions, Guler said. Guler
understood that Turkmenbashi's attitude was a major obstacle,
but he thought it would be possible to work with and convince
him of the merits of a trans-Caspian project -- if only the
U.S. would engage.


5. (SBU) Guler also highlighted his interest in providing
more Turkish energy to Iraq. In addition to the proposed
expansion of electricity transmission capacity, he noted that
Turkish firms could quickly build natural gas-fired power
plants in northern Iraq and even loan Turkey's currently
unused mobile oil generating plants.


6. (C) Comment: Guler is somebody we can work with and
should be working with more. He is very experienced and
understands the challenges of dealing with Turkmenbashi, but
sees no other alternative for keeping Iranian gas out of
Europe. He said he had never visited the U.S. (at least as
minister) and would welcome the opportunity. An invitation
from Secretary Bodman would be an excellent opportunity to
engage a forward-leaning Turkish minister who wants to work
with us in our regional energy agenda, as well to help create
new opportunities for U.S. firms in Turkey's growing energy
sector. End Comment.
MCELDOWNEY