Identifier
Created
Classification
Origin
07WARSAW234
2007-02-05 07:44:00
CONFIDENTIAL
Embassy Warsaw
Cable title:  

POLAND: ENERGY UPDATE

Tags:  EPET ENRG ECON PREL PO RS UP KZ AG GM 
pdf how-to read a cable
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DE RUEHWR #0234/01 0360744
ZNY CCCCC ZZH
O 050744Z FEB 07
FM AMEMBASSY WARSAW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3054
INFO RUEHTA/AMEMBASSY ASTANA IMMEDIATE 0001
RUEHKV/AMEMBASSY KYIV IMMEDIATE 0029
RUEHSK/AMEMBASSY MINSK IMMEDIATE 3444
RUEHMO/AMEMBASSY MOSCOW IMMEDIATE 2571
RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 WARSAW 000234 

SIPDIS

SIPDIS

DEPT FOR EUR, EUR/NCE, EUR/RUS, EUR/ERA, EB/ESC, S/P
EUR FOR MPEKALA AND MBRYZA
EUR/NCE FOR DKOSTELANCIK AND BPUTNEY
EUR/RUS FOR SGUHA
EUR/ERA FOR DLIPPIATT, LCATIPON
EB/ESC FOR SGALLOGLY, JLEWANDOWSKI, RGARVERICK
S/P FOR SHELLMAN AND GMANUEL
ENERGY FOR LEKIMOFF
COMMERCE FOR 4232/ITA/MAC/EUR/OECA/JBURGESS, JKIMBALL,
MROGERS
TREASURY FOR MGAERTNER

E.O. 12958: DECL: 01/11/2017
TAGS: EPET ENRG ECON PREL PO RS UP KZ AG GM
SUBJECT: POLAND: ENERGY UPDATE

REF: WARSAW 88

Classified By: Econ Counselor Richard Rorvig, reasons 1.4 b and d

C O N F I D E N T I A L SECTION 01 OF 02 WARSAW 000234

SIPDIS

SIPDIS

DEPT FOR EUR, EUR/NCE, EUR/RUS, EUR/ERA, EB/ESC, S/P
EUR FOR MPEKALA AND MBRYZA
EUR/NCE FOR DKOSTELANCIK AND BPUTNEY
EUR/RUS FOR SGUHA
EUR/ERA FOR DLIPPIATT, LCATIPON
EB/ESC FOR SGALLOGLY, JLEWANDOWSKI, RGARVERICK
S/P FOR SHELLMAN AND GMANUEL
ENERGY FOR LEKIMOFF
COMMERCE FOR 4232/ITA/MAC/EUR/OECA/JBURGESS, JKIMBALL,
MROGERS
TREASURY FOR MGAERTNER

E.O. 12958: DECL: 01/11/2017
TAGS: EPET ENRG ECON PREL PO RS UP KZ AG GM
SUBJECT: POLAND: ENERGY UPDATE

REF: WARSAW 88

Classified By: Econ Counselor Richard Rorvig, reasons 1.4 b and d


1. (U) This is an action cable, see paras 5, 7, 8


2. (C) Summary. The GOP continues to pursue the purchase
of Transpetrol assets from Yukos International. The GOP
remains concerned that the government of Slovakia will not
support a GOP purchase. The GOP started negotiating a
contract for LNG purchases from Algeria, but is worried that
Russian or German companies may box them out. Deputy
Minister of Economy Naimski will visit Kazakhstan in February
and President Kaczynski in March to discuss energy
cooperation. The GOP may cooperate on energy projects with
Hungary's MOL. News reports that ChevronTexaco may cooperate
with Gazprom sparked the GOP's interest. End Summary.

--------------
Pern will try to buy Transpetrol
--------------


3. (C) Marcin Jastrzebski, PERN (Poland's oil pipeline
operator) board member, told Econoff that he will meet with
David Godfrey of Yukos International on February 1 or 2 to
attempt to negotiate a deal to purchase the Transpetrol
assets from Yukos International. Jastrzebski believes he
will be able to negotiate a deal with Transpetrol. He
remains concerned that the government of Slovakia will not
support a purchase by a third party. When EconOff discussed
Minister of Economy Jahnatek's opposition to a deal with
Poland, Jastrebski replied that he believes that Jahnatek's
support for a deal with Russia and recent press statements
supporting Russia in its recent oil spat with Belarus will

provide PM Fico with a reason to fire Jahnatek and approve a
Polish purchase from Yukos International.


4. (C) Subsequently, Krzystof Rogala, formerly of the
Ministry of Economy Office of Energy Diversification, now of
state-owned Gaz System but still working for Deputy Minister
Naimski, told EconOff that PM Kaczynski spoke to PM Fico
about the proposed Transpetrol purchase last October.
EconOff recommended that circumstances have changed since
October and that another discussion might be helpful to the
GOP's strategy. Rogala stated that on February 12, the
Krynica Economic Forum, (an ngo that hosts an annual
Davos-style regional Economic Forum) is hosting a conference
on Energy Policy for Europe. It has invited EU DG for Energy
Piebalgs, Polish Minister of Economy Wozniak, and Slovak
Minister of Economy Jahnatek. If Jahnatek attends, the GOP
wilus the opportunity to speak to him about the
transaction.

--------------
Gas From Algeria
--------------


5. (C) Rogala also confirmed that the GOP recently began
negotiations with the government of Algeria to purchase LNG.
The GOP is greatful to Secretary of Energy Bodman for
discussing Poland's interest in purchasing gas with the
government of Algeria, as requested by Deputy Minister of
Economy Naimski in late November. Algeria is Poland's best
option for LNG as it is relatively close, has LNG experience,
and is a reliable supplier. Poland, however, is concerned
that either Germany or Russia, or a combination of both, will
negotiate a contract with Algeria that will preclude sales to
Poland. Rogala asked if the USG could provide information to
the GOP on any potential Algerian contracts with Russia or
Germany (which the GOP believes may front for Russian
concerns).

--------------

WARSAW 00000234 002 OF 002


Kazakhstan Still of Interest
--------------


6. (C) The GOP remains interested in energy cooperation
with Kazakhstan. Deputy Minister of Economy Naimksi will
visit Kazakhstan in February. President Kaczynski will visit
in March. During the President's visit the GOP hopes that
President Nazarbayev will accept an invitation to Warsaw for
an energy "summit" with the presidents of Azarbaijan,
Georgia, and Ukraine aimed at promoting the
Odessa-Brody-Plock pipeline project and
further energy cooperation between the countries.

--------------
Hungary - Who Really Owns MOL?
--------------


7. (C) Responding to EconOffs statement that the recent oil
cut-off caused the government of Hungary to begin to
re-evaluate its dependence on Russian energy supplies, Rogala
stated that Hungary's gas network was already lost to Russia,
but that oil is another matter. A former advisor to former
PM Orban whom the GOP respects is now working in MOL. The
GOP might be interested in cooperating with MOL, but is
concerned about its actual ownership. Rogala noted that 57%
of investment in MOL is by funds and investment firms listed
in the U.S. He asked if the U.S. could provide information
on who the actual owners of MOL are. Jastrzebski emphasized
that GOP cooperation with MOL will only be technically
possible if PERN is able to purchase Transpetrol. Other
options are feasible but much more expensive.

--------------
ChevronTexaco-Gazprom?
--------------


8. (C) Rogala also enquired whether EconOff or the USG had
information that would confirm or deny press reports that
ChevronTexaco is considering cooperation or a partnership
with Gazprom. (Note and Comment: While grudgingly admitting
that Odessa-Brody-Plock is "dead" in our last conversation
(ref),Rogala continues to look for oil volumes to re-reverse
the pipeline. ChevronTexaco is his favorite source. Any
potential collaboration between ChevronTexaco and Gazprom
would raise suspicions about ChevronTexaco in the GOP's
eyes. End Note and Comment.)


9. (C) Comment: Rogala, and to a lesser extent,
Jastrzebski are typical GOP interlocutors, portraying all
Russian companies as evil and suspecting the motives of
German companies. This Russophobia and Germanophobia informs
every energy security decision the GOP and its state-owned
entities make. To assist the GOP in its decision-making
process, and to encourage GOP cooperation with its neighbors,
post would appreciate information that can be provided to the
GOP on potential Algerian gas contracts with Russia and
Germany, the ownership of Hungarian-based MOL and the actual
state of play between ChevronTexaco and Gazprom.
HILLAS