Identifier
Created
Classification
Origin
06ANKARA319
2006-01-27 15:25:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ankara
Cable title:
TURKEY NATURAL GAS CRISIS WITH IRAN
VZCZCXRO3740 RR RUEHIK DE RUEHAK #0319 0271525 ZNR UUUUU ZZH R 271525Z JAN 06 FM AMEMBASSY ANKARA TO RUEHC/SECSTATE WASHDC 2764 INFO RUEHTA/AMEMBASSY ALMATY 2130 RUEHKB/AMEMBASSY BAKU 1312 RUEHBM/AMEMBASSY BUCHAREST 0805 RUEHMO/AMEMBASSY MOSCOW 5322 RUEHSF/AMEMBASSY SOFIA 0975 RUEHSI/AMEMBASSY TBILISI 2959 RUEHYE/AMEMBASSY YEREVAN 1179 RUCNMEM/EU MEMBER STATES COLLECTIVE RUCPDOC/DEPT OF COMMERCE WASHDC RHEBAAA/DEPT OF ENERGY WASHINGTON DC RHEHAAA/NSC WASHDC RHMFISS/HQ USEUCOM VAIHINGEN GE RUEUITH/ODC ANKARA TU//TCH// RUEHIT/AMCONSUL ISTANBUL 9677 RUEHDA/AMCONSUL ADANA 0319
UNCLAS ANKARA 000319
SIPDIS
USDOC FOR 4212/ITA/MAC/CPD/CRUSNAK
DOE FOR CHARLES WASHINGTON
SENSITIVE
SIPDIS
EUR ALSO FOR DAS BRYZA
E.O. 12958: N/A
TAGS: EPET ENRG ETRD TU RU
SUBJECT: TURKEY NATURAL GAS CRISIS WITH IRAN
REF: ANKARA 65
Sensitive But Unclassified. Please Handle Accordingly.
UNCLAS ANKARA 000319
SIPDIS
USDOC FOR 4212/ITA/MAC/CPD/CRUSNAK
DOE FOR CHARLES WASHINGTON
SENSITIVE
SIPDIS
EUR ALSO FOR DAS BRYZA
E.O. 12958: N/A
TAGS: EPET ENRG ETRD TU RU
SUBJECT: TURKEY NATURAL GAS CRISIS WITH IRAN
REF: ANKARA 65
Sensitive But Unclassified. Please Handle Accordingly.
1. (SBU) On January 21, Iran cut its daily natural gas
shipment to Turkey from almost 30 million cubic meters to 5-
10 million cm (some daily fluctuation). Coming on the heels
of the Russian-Ukraine gas face-off, the current gas crisis
in Georgia, and cold weather and concerns in Europe, the cut-
off has generated broad concern about Turkey's natural gas
situation. Although on an annual basis, Iran provides 15%
of Turkey's gas, the current short-fall is almost 20% of
Turkey's daily requirement, because of winter variation.
2. (SBU) The GOT has faced strong criticism in the press
for inadequate contingency planning and not taking timely
steps to put in place sufficient gas storage capacity.
Energy Ministry sources tell us Energy Minister Guler has
been meeting with the Iranian ambassador in an attempt to
resume shipment. In a long television interview January 26,
Guler said the GOT has sought high level assurances from
Russia that it would increase gas supply and assured the
public that residential consumers would not be affected.
3. (SBU) In addition, BOTAS, the state-owned pipeline
operator, cut gas supply to automobile producers and
"interruptible" industrial and electricity generation plants
-- most with fuel switching capacity. However, the GOT
backed off plans for more widespread cuts to industry. For
the longer term, Guler also reaffirmed plans to increase gas
storage capability and to develop an LNG importing and
processing capability.
4. (SBU) Comment: Like a comparable cut-off last year by
Iran, the reasons for the cut-off are perceived as partly
technical (cold weather causing problems with compressors),
partly political, and partly winter energy requirements in
Iran. Turkey recently cancelled a technical visit to Iran
to discuss gas supply issues and has taken the contract to
international arbitration over gas price and quality issues.
Although Turkish officials tell us they have grounds to
pursue cancellation of the contract with Iran, they have
been unwilling to pursue that step for energy supply
diversification and political reasons.
5. (SBU) The extent of the disruption is serious, but it
appears be manageable. The state pipeline company BOTAS has
suffered personnel changes over the years, reducing
experience and technical capacity, and reducing its capacity
to confidently put in place technical algorithms for this
kind of crisis. The fact that the Energy Ministry and
President Erdogan immediately stepped into the fray is an
indication of BOTAS' institutional weakness.
WILSON
SIPDIS
USDOC FOR 4212/ITA/MAC/CPD/CRUSNAK
DOE FOR CHARLES WASHINGTON
SENSITIVE
SIPDIS
EUR ALSO FOR DAS BRYZA
E.O. 12958: N/A
TAGS: EPET ENRG ETRD TU RU
SUBJECT: TURKEY NATURAL GAS CRISIS WITH IRAN
REF: ANKARA 65
Sensitive But Unclassified. Please Handle Accordingly.
1. (SBU) On January 21, Iran cut its daily natural gas
shipment to Turkey from almost 30 million cubic meters to 5-
10 million cm (some daily fluctuation). Coming on the heels
of the Russian-Ukraine gas face-off, the current gas crisis
in Georgia, and cold weather and concerns in Europe, the cut-
off has generated broad concern about Turkey's natural gas
situation. Although on an annual basis, Iran provides 15%
of Turkey's gas, the current short-fall is almost 20% of
Turkey's daily requirement, because of winter variation.
2. (SBU) The GOT has faced strong criticism in the press
for inadequate contingency planning and not taking timely
steps to put in place sufficient gas storage capacity.
Energy Ministry sources tell us Energy Minister Guler has
been meeting with the Iranian ambassador in an attempt to
resume shipment. In a long television interview January 26,
Guler said the GOT has sought high level assurances from
Russia that it would increase gas supply and assured the
public that residential consumers would not be affected.
3. (SBU) In addition, BOTAS, the state-owned pipeline
operator, cut gas supply to automobile producers and
"interruptible" industrial and electricity generation plants
-- most with fuel switching capacity. However, the GOT
backed off plans for more widespread cuts to industry. For
the longer term, Guler also reaffirmed plans to increase gas
storage capability and to develop an LNG importing and
processing capability.
4. (SBU) Comment: Like a comparable cut-off last year by
Iran, the reasons for the cut-off are perceived as partly
technical (cold weather causing problems with compressors),
partly political, and partly winter energy requirements in
Iran. Turkey recently cancelled a technical visit to Iran
to discuss gas supply issues and has taken the contract to
international arbitration over gas price and quality issues.
Although Turkish officials tell us they have grounds to
pursue cancellation of the contract with Iran, they have
been unwilling to pursue that step for energy supply
diversification and political reasons.
5. (SBU) The extent of the disruption is serious, but it
appears be manageable. The state pipeline company BOTAS has
suffered personnel changes over the years, reducing
experience and technical capacity, and reducing its capacity
to confidently put in place technical algorithms for this
kind of crisis. The fact that the Energy Ministry and
President Erdogan immediately stepped into the fray is an
indication of BOTAS' institutional weakness.
WILSON