EU-EGYPT ENERGY FORUM AND ARAB GAS PIPELINE

C O N F I D E N T I A L STATE 153799 SIPDIS SIPDIS E.O. 12958: DECL: 11/10/2016 TAGS: EPET EUN XF XG SUBJECT: EU-EGYPT ENERGY FORUM AND ARAB GAS PIPELINE REF: A. DAMASCUS 931 ¶B. BAGHDAD 3254 Classified By: EEB/ESC Acting DAS Stephen Gallogly ¶1. (C) Summary and Action Request: Department requests information on the recent EU-Africa-Middle East Energy Conference that took place on November 1 in Sharm el Sheik, Egypt, and on the status of construction and operation of the Arab Gas Pipeline, including possible links to Iraq. See paragraph 6 for action request details. End Summary. EU - Egypt Energy Forum -------------- ¶2. (U) The EU and Egypt sponsored an energy forum in Sharm el-Sheik November 1 for countries from the EU, the Middle East, and Africa. Over 60 countries were expected to be represented. EC Commissioners Benita-Ferrero Waldner and Andres Piebalgs attended. Egyptian Ministers Ahmed Aboul Gheit, Sameh Fahmi, Hassan Ahmed Younes, and other high-level participants were expected. Arab Gas Pipeline -------------- ¶3. (U) EU Commissioners Ferrero Waldner and Piebalgs were also reported to have held a separate meeting with the Energy Ministers of Egypt, Jordan, Syria, and Iraq to discuss the Arab Gas Pipeline. There were reports that the EU had agreed to finance the construction of the pipeline through Syria to Turkey and that construction of the Syria-Turkey link would begin in November 2007. ¶4. (U) The Arab Gas Pipeline is intended to link Egypt, Jordan, Lebanon, Syria, and Turkey to provide gas for the region and, eventually, for export to Europe. The first and second sections of the pipeline bringing gas from Egypt to Jordan are reportedly complete. Section 3 is planned to connect with the Deir Al power station in Syria. According to media reports in September, Egypt's Minister Fahmi said that the Governments of Egypt, Syria, and Turkey had agreed to set up a trilateral company to build the pipeline through Syria to Turkey. The Syrian Connection -------------- ¶5. (C) Embassy Damascus has reported that the SARG has entered into contracts with a Russian company, Stroytransgas, to build the Arab Gas Pipeline from the Jordanian border through central Syria and on to the Turkish border (Ref A). The GOI has said it plans to build a short pipeline from the Akkas field in western Anbar province to Syria, which could then be linked to the Arab Gas Pipeline (Ref B). ¶6. (C) Action Requests: For USEU Brussels, Amman, Ankara, Baghdad, Cairo, Damascus: Department requests information on: - EU-Egypt Energy Forum November 1 in Sharm el Sheikh: participation, presentations, conclusions, and impact; - Meetings on the margins of the forum that included discussion of the Arab Gas Pipeline and other energy issues, especially the EU meeting with Arab Ministers noted above. - The status of financing, construction, and operation of the Arab Gas Pipeline and links to Iraq and other countries. For Embassy Moscow: Please provide information on Stroytransgas and its reported contract with the SARG. ¶7. (U) Department greatly appreciates Posts' assistance. RICE