BULGARIA: INPUT FOR NEW REQUIRED REPORT TO

UNCLAS SOFIA 000101

SIPDIS

SIPDIS

EEB/ESC/IEC FOR B. GLENN GRIFFIN, EUR/ERA, EUR/NCE, EUR/SCA

E.O. 12958: N/A
TAGS: ENRG SENV APER ABUD
SUBJECT: BULGARIA: INPUT FOR NEW REQUIRED REPORT TO
CONGRESS ON ENERGY

REF: SECSTATE 10743


1. (U) The following is Embassy Sofia's response to reftel,
which requests input for two new reports to Congress on
energy.

BACKGROUND: BULGARIA: INCREASINGLY AT THE CENTER OF ENERGY
SECURITY ISSUES


2. (U) Bulgaria is increasingly on the front line of
European energy security issues. A hydrocarbon-poor country,
Bulgaria is turning into a major transit point for proposed
oil and gas pipelines. On the gas side, Bulgaria is party to
the Nabucco pipeline project, which will bring Azerbaijani
gas to Europe. In January 2008, it signed an
intergovernmental agreement with Russia to build the South
Stream pipeline, designed to bring gas from Russia to Europe.
On the oil side, Bulgaria is party to the
Burgas-Alexandroupolis pipeline, a Bosphorus-bypass project
that will bring Caspian and Russian oil from the Bulgarian
port of Burgas to the Greek port of Alexandroupolis.
Bulgaria will also host the proposed AMBO pipeline, which
seeks to bring Caspian and Russian oil from Burgas, across
Macedonia, to the Albanian port of Vlore. Over ninety
percent dependent on Russian gas itself, Bulgaria is
balancing the need to keep Russian gas flowing while looking
for ways to diversify its energy sources. The answers
include the Nabucco gas pipeline; a potential LNG terminal;
the planned, Russian-designed, nuclear power plant at Belene;
increased use of renewable energy; and savings associated
with greater energy efficiency. In February 2008, the World
Energy Council named Bulgaria the most energy inefficient
country in the European Union.


3. (U) Bulgaria's strategic location, increasing importance
as a pipeline transit country, and extremely cost-competitive
operating environment, make Embassy Sofia an ideal platform
from which to launch any new USG initiatives on energy
security in Europe. With ample space in its new,
state-of-the-art embassy, Mission Sofia could host an
EU-energy security-focused Energy attache from the Department
of Energy, a regional energy officer from the State
Department, additional State Department Public Diplomacy
staff which could manage regional, energy-focused PD
programs, and other energy security-focused federal employees
who could provide regionally-focused research, training
programs, U.S. business advocacy, and technical assistance on
energy. Bringing together such a group of energy-security
focused USG officials at "Energy Center Sofia" would help the
USG answer the new strategic imperative posed by the emerging
dominance of particular energy suppliers.

EMBASSY ACTIVITIES


4. (U) In addition to providing extensive reporting on the
pipeline projects that are proposed to transit Bulgaria and
these project's potential effect on European energy security,
in 2007 the Embassy:

-- Led and hosted, in December 2007, the USG Energy Reporting
Officers conference. This two-day event brought together
more than 40 officers from 30 different posts and U.S.
Government agencies to discuss pipeline projects and energy
security.

-- Supported, in connection with the above-mentioned Energy
Conference, the visits of the EUR DAS for Energy Issues and
EEB Energy Coordinator.

-- Urged, through intense high-level engagement, the
Government of Bulgaria to protect its interests when
negotiating pipeline deals.

-- Supported the planning of a local NGO's conference on
energy security in Europe.

-- Briefed U.S. firms interested in entering Bulgaria's
energy sector.

-- Advocated for a major U.S. renewable energy company when
it encountered bureaucratic obstacles related to a major
project in Bulgaria.

-- Instituted an Embassy working group focused on energy and
investment issues.



5. (U) A. Within Embassy Sofia, the Political/Economic
section takes the lead on gas and oil issues. The Executive

Office is heavily engaged in Energy as well. Department of
Commerce and USAID staff who worked on energy issues in 2007
are not covered in this cable.


B. Positions of State Department employees that work on
energy matters and the percentage of time they devote to
energy:

-- Ambassador: 15 percent of time
-- Deputy Chief of Mission: 5 percent of time
-- Pol/Econ Counselor: 5 percent of time
-- Economic Officer: 60 percent of time
-- Pol/Econ OMS: 5 percent of time
-- Pol/Econ FSN: 30 percent of time


C. Description of the positions of employees and the kinds
of work they do:

-- Ambassador: Engages highest level host government
officials on energy and energy security issues; advocates
U.S. policy on energy; engages the media on U.S. energy
policy and energy security issues; maintains contacts with
U.S. energy companies.

-- Deputy Chief Of Mission: Engages host government
officials and business representatives on energy and energy
security issues.

-- Pol/Econ Counselor: Supervises the work of the Economic
Officer handling the energy portfolio.

-- Economic Officer: Advocates U.S. policy on energy and
energy security issues; reports on developments in the energy
sector; reports on energy-related meetings; engages host
government officials on energy and energy security issues;
extends and deepens contacts with U.S. and local energy
companies; supports energy-related visits; coordinates work
of the Embassy working group on energy issues.

-- Pol/Econ OMS: Supports energy-related work of Pol/Econ
Chief and Economic Officer.

-- Econ/FSN: Researches and reports on developments in the
energy sector; expands contacts with energy sector officials
and companies; supports energy-related visits.


D. Budget:

Base Salary Costs: 106,044
Programs: None in 2007.


6. (U) Comment: Energy security is increasingly a
strategic imperative for the United States. If the USG plans
to allocate additional resources to deal with this issue in
Europe, Embassy Sofia should be considered as a location from
which to run regionally-focused programs of all types -
analytical research, public diplomacy, training, export
promotion. For additional information on the "Sofia Energy
Center" concept, please contact Economic Officer Kelly
Adams-Smith at adamssmithke@state.gov.
Beyrle