QATAR'S PLANS TO PURSUE NUCLEAR ENERGY

UNCLAS SECTION 01 OF 03 DOHA 000869

SIPDIS

COMMERCE FOR SARAH LOPP
STATE FOR MARC HUMPHREY

E.O. 12958: N/A
TAGS: ENRG TRGY BEXP BTIO QA
SUBJECT: QATAR'S PLANS TO PURSUE NUCLEAR ENERGY

REF: A. SECSTATE 127423

B. DOHA 827

C. DOHA 456

D. DOHA 87

E. DOHA 45

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KEY POINTS
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-- Qatar is considering embarking on a civil nuclear power
program, and the Qatar Foundation would soon like to start a
nuclear education partnership with Texas A&M University,
which already has a branch campus in Doha.

-- U.S. cooperation in this field has thus far been limited
because the GOQ has yet to sign an MOU on nuclear ooperation
with us.

-- Commercial opportunities for U.S. companies currently
include feasibility studies and other contract services. A
Qatari decision to embark on a nuclear power program would
open up the full range of associated commercial needs to U.S.
firms.

-- Qatar has only the beginnings of a regulatory framework
for nuclear issues and no indigenous trained workforce in the
nuclear field.

-- Several foreign competitors are actively engaging Qatar on
commercial nuclear issues, including France, Russia, Belgium,
and Canada.

End Key Points.

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Overview of Qatar's Civil Nuclear Power Program
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Note: The paragraphs below correspond to the specific
questions contained in reftel.


1. The GOQ is currently considering development of a nuclear
power generation capacity. Meanwhile, the quasi-governmental
Qatar Foundation wants to build on its existing partnership
with Texas A&M University to create an educational base for
training Qataris in nuclear fields. Qatar signaled its
interest in this sector by hosting a Middle East and North
Africa (MENA) Nuclear Energy Forum from November 10-11, 2008
which brought together regional governments, multilateral
organizations, and the nuclear industry. The event was
sponsored by Qatar General Electricity and Water Corporation
(Kahramaa),Qatar Petroleum (QP),Thorium Power, Electricite
de France (EDF),and ACWA International, with additional
support from the Qatar Science and Technology Park. There is
reportedly a recommendation pending before the GOQ for a
detailed study of the prospects of a national nuclear power
program.

-- Unlike other Gulf states, the U.S. does not yet have a
nuclear MOU with Qatar. The Secretary's Special Envoy for
Nuclear Nonproliferation, Ambassador Jackie Wolcott, and
accompanying teams visited Qatar in both June and November
2008 and held discussions with GOQ officials on the MOU and a
way forward on nuclear cooperation. However, a final
decision on the MOU remains pending with the GOQ. A
U.S.-Qatar MOU would first require Qatari ratification of a
safeguards agreements with the IAEA.


2. Qatar has several motivations for pursuing nuclear power.
Though Qatar has the third-largest gas reserves in the world
and well-developed energy infrastructure, it nonetheless sees
value in energy diversification, particularly as its power
demands have been growing by over 10 percent each year. The
Energy Minister stated at the MENA forum that Qatar was
"reassessing the role that nuclear energy might play in (its)
domestic energy mix." Other officials have stated that
Qatar's growing power needs and the moratorium on new gas
projects has prompted the Ministry of Energy and Industry to
examine nuclear power from a business potential. However,
the Ministry is still in the preliminary stages of creating a
business model for how nuclear power might be harnessed in
Qatar. Qatar also sees other GCC countries, particularly the
UAE, moving forward on nuclear plans and does not want to be
left behind. And beyond nuclear energy, some elements in the
GOQ would like to see local development of a nuclear medicine
program.

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3. It is not clear how the government will finance or promote
a civilian nuclear sector, but nuclear activities will likely
be conducted via government-controlled entities, such as the
public utilities. As part of its vision of subsidizing and
elevating Qatar's educational system, the Qatar Foundation
hopes to bolster nuclear engineering programs to begin
educating and training a generation of Qataris with
sufficient skills and background in the field.


4. Key nuclear decision-making bodies and officials include:

-- Ministry of Energy and Industry. Minister Abdullah Bin
Hamad Al-Attiyah is the primary decision-maker for all
aspects of Qatar's energy industry. Manager of Corporate
Planning Issa al-Ghanim is also closely involved in the
Ministry's examination of nuclear power. Al-Ghanim is also
Vice Chairman of both Kahramaa and the separate Qatar
Electricity and Water Company.

-- Kahramaa (Qatar's main power and water utility). Manager
Yousuf Janahi has publicly represented the utility on this
issue.

-- The Ministry of Environment (formerly the Supreme Council
for the Environment and Natural Reserves) will, according to
its officials, have primary regulatory responsibility for
nuclear matters. Dr. Rashid Al-Kuwari is the Director of the
Radiological Protection and Nuclear Energy Department.

-- The Ministry of Foreign Affairs will be involved in legal
matters related to Qatar's nuclear program. The primary
interlocutor for post so far has been MFA Director for Legal
Affairs Ahmed Hassan Al-Hammadi. Ultimately, the Amir Hamad
Bin Khalifa Al Thani and Prime Minister and Foreign Minister
Hamad Bin Jassim Al Thani will be the key decision-makers on
approving any international agreements or conventions.

-- Shaykha Mozah, the Amir's consort and Chair of Qatar
Foundation, is the driving force behind QF's push to play the
leading role in developing an indigenous human resources
capability for nuclear energy. Her Science and Technology
Adviser, Dr. Tidu Maini, and the Science and Technology Park
Managing Director, Dr. Eulian Roberts, are also key
interlocutors.

-- Qatar University Professor Ilham Al-Qaradawi has played a
key liaison role with Texas A&M and advises the government on
nuclear matters. She is also a nuclear medicine technology
consultant for hospitals on radioisotopes that would require
production in Qatar.


5. Qatar has an embryonic nuclear regulatory authority housed
in the Ministry of Environment. According to the Ministry,
its authorities will include the conclusion of technical
cooperation agreements, adoption of international
conventions, and development of a strategic plan. This
primacy may not be recognized yet by other Qatari actors; in
June 2008, QF representatives asked a USG inter-agency team
if the U.S. could help Qatar establish a national regulatory
authority.


6. Qatar does not/not have a domestic nuclear liability law.


7. Qatar does not/not have a manufacturing sector involved in
nuclear-related products or services.


8. Qatar has virtually no nuclear-trained indigenous
workforce. The development of civil nuclear power would
require a significant foreign workforce, a key point
recognized by the government. The Ministry of Energy and
Industry estimates that a single nuclear plant would require
1000 associated personnel (600 operators and 400 regulators),
a number that is unworkable under a Qatari-intensive
workforce model. The Qatar Foundation under Shaykha Mozah
envisions its goal as building an indigenous Qatari human
resources capacity in this area which would help fill this
gap over the next two decades. QF and the Ministry of
Environment are beginning to look at programs for training
domestic personnel. Most notably, QF would like to enter
into an educational partnership with Texas A&M University,
but the university is waiting until the GOQ and USG sign a
formal MOU on cooperation.

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Opportunities for U.S. Industry
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9. Qatar currently has no known nuclear-related tenders,
though this could change in the near future as the GOQ looks
to undertake feasibility studies or other contract services.
The tender/selection process would depend on the Qatari
entity taking action, and could come from one or more of the
Ministry of Energy and Industry, the Ministry of Environment,
or the Qatar Foundation.


10. At this stage, nuclear sector opportunities for U.S.
businesses probably include feasibility studies and other
contract services. At the November nuclear energy forum, one
Qatari official noted the GOQ would be engaging an outside
consultant to study several preliminary questions for a
nuclear power industry, including the ability of Qatar's grid
to support a 1,000 MW nuclear power plant and finding a
suitable site for it. Over time, if Qatar decides to invest
in a domestic industry, the opportunities would include the
full spectrum of plant construction, management, logistics,
operations, etc. Any nuclear plants would likely be built
using the same joint venture model Qatar uses for its major
liquefied natural gas projects.


11. The primary companies involved in Qatar's civil nuclear
sector would be Qatar Petroleum, (the state-owned energy
company),and Kahramaa (the power and water utility).

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Foreign Competitors
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12. Several other nuclear supplier countries are engaging
Qatar; those known to the Embassy include France, Belgium,
Canada, and Russia. Political considerations would likely be
a factor in Qatar's decision about which countries to
cooperate with on nuclear supply.

-- A Qatari delegation led by the Ministry of Energy and
Industry Planning Director Issa al-Ghanim visited Russia and
ROSATOM in October.

-- France is interested in helping Qatar build and operate
nuclear plants. The French oil company Total and Electricite
de France (EDF) reportedly held discussions with Qatar, and
during President Sarkozy's January 2008 trip to Doha, the GOQ
signed an MOU with EDF which includes nuclear cooperation as
one aspect of their joint work.

-- Qatar held technical discussions with a Belgian team in
January 2008 and a team from the Ministry of Environment
visited Belgium in June 2008.

-- At the November nuclear energy forum, nuclear suppliers
making presentations included Areva, EDF, Total,
Suez-Tractebel, and Atomic Energy of Canada Limited (AECL).

LeBaron