TURKMENISTAN: OMV REP ASSERTS NABUCCO IS THE EC

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000458 SIPDIS SIPDIS STATE FOR SCA/CEN, EEB PLEASE PASS TO USTDA DAN STEIN USEU FOR AMB. GRAY ENERGY FOR EKIMOFF/THOMPSON COMMERCE FOR HUEPER E.O. 12958: DECL: 04/12/2018 TAGS: PREL EPET EU AU RS IR TX SUBJECT: TURKMENISTAN: OMV REP ASSERTS NABUCCO IS THE EC PIPELINE OF CHOICE Classified By: CDA RICHARD E. HOAGLAND: 1.4 (B),(D) ¶1. (SBU) Charge met April 11 with Baku-based Austrian Energy firm OMV Caspian Region Country Manager Wolfgang Sporrer who also introduced himself as the Nabucco representative for Turkmenistan. He was in Ashgabat for the April 9-10 EU Troika Central Asian Ministerial, and for the next-day Turkmenistan-Austria Bilateral Economic Commission. "GAS IS GAS" ¶2. (C) Sporrer asserted energetically at the beginning of the meeting, "Nabucco is the premier European energy priority, 100%, certainly for the European Commission. All other options pale in comparison." When pressed if indeed the EC, by policy, has designated Nabucco as it's pipeline of choice, Sporrer equivocated, saying "Nabucco and South stream can be complementary for demand." But for supply? Sporror said, "We have never excluded the possibility of transmitting Russian gas through Nabucco." When asked if this has been explicitly discussed with Russia, Sporrer replied, "It's been stated; they should get the drift. Nabucco will have an 'open season' this Summer and Fall, and we expect Russia to bid." For Nabucco to be viable at 30-32 bcm/y, Sporrer explained, "Nabucco must have Russian, Trans-Caspian, or Iranian gas. Maybe Iraqi. But, of course, every source is politically problematic." ¶3. (C) When pressed further, Sporrer noted, "Gas is gas. If Central Asia's gas reaches Europe via Russia's South Stream or via Nabucco, it's all the same." Charge begged to differ and noted the geopolitical implications for Central Asian independence and sovereignty, as well as for European energy security under the shadow of Gazprom. Sporrer acknowledged the point but said, "Our concern is demand, not so much supply. Gas is gas." ¶4. (C) Sporrer asked, "Do you think we could get Turkmen gas via Iran to Turkey for Nabucco?" Charge replied, "Absolutely not, so long as Iran flouts its UN Security Council Resolution responsibilities." BERDIMUHAMEDOV "GUARANTEES" GAS FOR NABUCCO ¶5. (C) According to Sporrer, during the EU Troika Central Asia Ministerial, President Berdimuhamedov told EU Commissioner for External Affairs Bertina Ferrero-Waldner he "guarantees 10 bcm/y for Nabucco," but Europe will have to buy it at Turkmenistan's border at world prices. Ferrero-Waldner then reported the "guarantee" to the media in Austria, but did not mention that Nabucco would have to figure out how to get the Turkmen gas from Turkmenistan's border to Europe. OMV SAYS IT'S A PLAYER ¶6. (C) Sporrer said OMV is seeking offshore and onshore access to Turkmenistan's gas and is eager for "PSAs, contracts, or anything else." He declined to detail their state of play, but said OMV maintains an office in Ashgabat under the rubric of Rompetrol, the Romanian energy company OMV recently acquired which is doing the negotiation and is "active with all the Turkmen energy officials." ¶7. (C) COMMENT: Embassy Ashgabat would appreciate Embassy Baku's evaluation of Sporrer as a serious player. Our ASHGABAT 00000458 002 OF 002 initial impression is that he's a second-tier sort with more showmanship than geopolitical insight -- rather the type the Turkmen seem to like. Because he describes himself as a Nabucco representative, he bears watching, as the game becomes ever more complex. END COMMENT. HOAGLAND