Identifier
Created
Classification
Origin
08BAKU96
2008-02-05 12:40:00
CONFIDENTIAL
Embassy Baku
Cable title:
AZERBAIJAN SEEKS TO DELIVER MAXIMUM GAS TO TURKEY;
how-toVZCZCXRO9812 PP RUEHAG RUEHROV DE RUEHKB #0096 0361240 ZNY CCCCC ZZH P 051240Z FEB 08 FM AMEMBASSY BAKU TO RUEHC/SECSTATE WASHDC PRIORITY 4701 INFO RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES RUEAIIA/CIA WASHINGTON DC RHMFISS/CDR USEUCOM VAIHINGEN GE RUCPDOC/DEPT OF COMMERCE WASHDC RHEBAAA/DEPT OF ENERGY WASHDC RUEKDIA/DIA WASHDC RHEHNSC/NSC WASHDC
C O N F I D E N T I A L BAKU 000096
SIPDIS
SIPDIS
E.O. 12958: DECL: 02/05/2018
TAGS: PGOV PREL ENRG AJ TU
SUBJECT: AZERBAIJAN SEEKS TO DELIVER MAXIMUM GAS TO TURKEY;
SOME TECHNICAL PROBLEMS ON BOTH SIDES
REF: ANKARA 200
Classified By: Ambassador Anne E.Derse, (Reasons 1.4 b,d)
C O N F I D E N T I A L BAKU 000096
SIPDIS
SIPDIS
E.O. 12958: DECL: 02/05/2018
TAGS: PGOV PREL ENRG AJ TU
SUBJECT: AZERBAIJAN SEEKS TO DELIVER MAXIMUM GAS TO TURKEY;
SOME TECHNICAL PROBLEMS ON BOTH SIDES
REF: ANKARA 200
Classified By: Ambassador Anne E.Derse, (Reasons 1.4 b,d)
1.(C) On February 5 EnergyOff spoke with a Baku-based BP
executive involved in gas marketing to Turkey. He said that
the contractual maximum of Azerbaijani (i.e. Shah Deniz Phase
One) gas that Botas can take is 14.4 million cubic meters a
day (mcm/d),which after contractually stipulated 'gross
calorific value adjustment' becomes 13.6mcm/d.
2.(C) He said that due to technical difficulties, delivery of
this daily amount of 13.6 mcm/d is not always possible,
although Azerbaijan seeks to deliver the maximum. Sometimes
the technical problems are on the Azerbaijani side, sometimes
on the Turkish (Botas) side. On average, Azerbaijan has been
delivering an average of approximately 12.5 mcm/d of the
contractually stipulated 13.6 mcm/d. He said that gas
delivery is largely an "all or nothing affair," in that on
any given day either the full amount will be delivered or
almost none. For example, he said that on February 4 the
full 13.6 mcm/d was delivered to Botas.
¶3. (C) He expressed no surprise that Turkey might have
trouble meeting its gas commitments to Greece, given that it
had lost approximately one-third of its supply (i.e. Iranian
gas). He said that Turkey had been quite active in the LNG
markets recently, in order to help meet their gas shortfall.
¶4. (C) On February 5 in a conversation with EnergyOff, a
Baku-based Statoil Hydro executive involved in gas marketing
to Turkey confirmed that Azerbaijan has been "delivering
steadily to Turkey all through the recent months." He also
pointed out that due to the fact that Shah Deniz gas is
richer in energy than the model used in the contracts with
Botas, delivering a smaller amount of gas than the maximum
stipulated in the contract is the accepted norm.
DERSE