Identifier
Created
Classification
Origin
08ATHENS1019
2008-07-16 14:47:00
CONFIDENTIAL
Embassy Athens
Cable title:
GAZPROM "REPAIR ISSUES" LEAVE GREECE WITH FIVE
how-toVZCZCBSO358 OO RUEHBS DE RUEHTH #1019 1981447 ZNY CCCCC ZZH O 161447Z JUL 08 FM AMEMBASSY ATHENS TO RUEHC/SECSTATE WASHDC IMMEDIATE 2173 INFO RUEHAK/AMEMBASSY ANKARA 5218 RUEHKB/AMEMBASSY BAKU 0213 RUEHMO/AMEMBASSY MOSCOW 1026 RUEHSF/AMEMBASSY SOFIA 1610 RUEHUP/AMEMBASSY BUDAPEST 0530 RUEHBM/AMEMBASSY BUCHAREST 0972 RUEHFR/AMEMBASSY PARIS 1484 RUEHMD/AMEMBASSY MADRID 1292 RUEHRO/AMEMBASSY ROME 4404 RUEHSI/AMEMBASSY TBILISI 0410 RUEHTH/AMCONSUL THESSALONIKI 1915 RHMFISS/DEPT OF ENERGY WASHINGTON DC RUEHBS/USEU BRUSSELS
C O N F I D E N T I A L ATHENS 001019
DEPT ALSO FOR E AND EUR (BRYZA)
E.O. 12958: DECL: 07/15/2018
TAGS: ENRG EPET GR
SUBJECT: GAZPROM "REPAIR ISSUES" LEAVE GREECE WITH FIVE
DAYS OF GAS
REF: COWAN-PRICE 7/16 TELCON
Classified By: A/DCM Clark Price for Reasons 1.4 (b,d)
C O N F I D E N T I A L ATHENS 001019
DEPT ALSO FOR E AND EUR (BRYZA)
E.O. 12958: DECL: 07/15/2018
TAGS: ENRG EPET GR
SUBJECT: GAZPROM "REPAIR ISSUES" LEAVE GREECE WITH FIVE
DAYS OF GAS
REF: COWAN-PRICE 7/16 TELCON
Classified By: A/DCM Clark Price for Reasons 1.4 (b,d)
1. (C) Claiming the need to undertake extensive "repair
works" on its natural gas pipeline through Bulgaria, Gazprom
has drastically reduced gas flows to Greece. According to
Natural Gas Company of Greece (DEPA) President Makis
Papageorgiou in a July 16 conversation with A/DCM, the cuts
leave Greece with five days of gas reserves (primarily LNG
reserves at the Revythoussa terminal near Athens) at a time
when there is no spot market availability. Papageorgiou
feels he has found a way to overcome the Russian supply
problem by obtaining additional supplies from Turkey over the
short term and through the spot market over the longer term.
2. (C) Papageorgiou explained that he has convinced BOTAS to
sign on July 17 an emendation to its current .75 bcm/annum
supply contract with DEPA. This foresees BOTAS making up for
below-contract level deliveries over the first half of 2008
with greatly increased deliveries now. Papageorgiou
emphasized that, in spite of DEPA's rights under the contract
to charge DEPA penalties for the delayed supplies, DEPA has
no intention to do so and in fact is greatly appreciative of
BOTAS' willingness to come to Greece's assistance now.
3. (C) Over the longer term, Papageorgiou said he believes he
will be able to obtain spot market supplies as of August at a
level that will allow DEPA to make up for reduced Russian
supplies. Papageorgiou said he has received indications from
the Italian firm ENI that it will be able to send Greece an
LNG cargo by the beginning of August. Papageorgiou is in
talks with Gas Natural of Spain and with Gaz de France as
well. He is hopeful to be able to conclude a solid LNG
supply agreement with the latter firm after a trip he is
scheduling to take to Paris in the near future.
4. (C) Comment. Papageorgiou said he believes Gazprom's real
reason for reduced supplies has nothing to do with "repair
work" but is rather an attempt to squeeze DEPA to allow
Gazprom direct access to the Greek market through Gazprom's
Greek daughter firm Prometheus. (Note: Gazprom is a 75%
owner of Prometheus; the rest of the firm is held by the
Copelouzos group of Greece.) He notes that Gazprom has
repeatedly told DEPA since the beginning of the year that it
will provide Greece with natgas supplies above and beyond its
current contractual rate of 2.8 bcm/annum under one
condition: that it provides the additional supplies through
Prometheus and not DEPA. DEPA has consistently refused the
Russian demand; Papageorgiou believes Gazprom has now decided
to put some real bite behind its bark. Thanks to Turkey, it
looks like this dog won't hunt.
SPECKHARD
DEPT ALSO FOR E AND EUR (BRYZA)
E.O. 12958: DECL: 07/15/2018
TAGS: ENRG EPET GR
SUBJECT: GAZPROM "REPAIR ISSUES" LEAVE GREECE WITH FIVE
DAYS OF GAS
REF: COWAN-PRICE 7/16 TELCON
Classified By: A/DCM Clark Price for Reasons 1.4 (b,d)
1. (C) Claiming the need to undertake extensive "repair
works" on its natural gas pipeline through Bulgaria, Gazprom
has drastically reduced gas flows to Greece. According to
Natural Gas Company of Greece (DEPA) President Makis
Papageorgiou in a July 16 conversation with A/DCM, the cuts
leave Greece with five days of gas reserves (primarily LNG
reserves at the Revythoussa terminal near Athens) at a time
when there is no spot market availability. Papageorgiou
feels he has found a way to overcome the Russian supply
problem by obtaining additional supplies from Turkey over the
short term and through the spot market over the longer term.
2. (C) Papageorgiou explained that he has convinced BOTAS to
sign on July 17 an emendation to its current .75 bcm/annum
supply contract with DEPA. This foresees BOTAS making up for
below-contract level deliveries over the first half of 2008
with greatly increased deliveries now. Papageorgiou
emphasized that, in spite of DEPA's rights under the contract
to charge DEPA penalties for the delayed supplies, DEPA has
no intention to do so and in fact is greatly appreciative of
BOTAS' willingness to come to Greece's assistance now.
3. (C) Over the longer term, Papageorgiou said he believes he
will be able to obtain spot market supplies as of August at a
level that will allow DEPA to make up for reduced Russian
supplies. Papageorgiou said he has received indications from
the Italian firm ENI that it will be able to send Greece an
LNG cargo by the beginning of August. Papageorgiou is in
talks with Gas Natural of Spain and with Gaz de France as
well. He is hopeful to be able to conclude a solid LNG
supply agreement with the latter firm after a trip he is
scheduling to take to Paris in the near future.
4. (C) Comment. Papageorgiou said he believes Gazprom's real
reason for reduced supplies has nothing to do with "repair
work" but is rather an attempt to squeeze DEPA to allow
Gazprom direct access to the Greek market through Gazprom's
Greek daughter firm Prometheus. (Note: Gazprom is a 75%
owner of Prometheus; the rest of the firm is held by the
Copelouzos group of Greece.) He notes that Gazprom has
repeatedly told DEPA since the beginning of the year that it
will provide Greece with natgas supplies above and beyond its
current contractual rate of 2.8 bcm/annum under one
condition: that it provides the additional supplies through
Prometheus and not DEPA. DEPA has consistently refused the
Russian demand; Papageorgiou believes Gazprom has now decided
to put some real bite behind its bark. Thanks to Turkey, it
looks like this dog won't hunt.
SPECKHARD