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

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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

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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