GEORGIA: GAS PIPELINE TO TSKHINVALI SERIOUSLY

C O N F I D E N T I A L SECTION 01 OF 02 TBILISI 002426

SIPDIS

E.O. 12958: DECL: 12/18/2018
TAGS: ENRG ECON PREL RU GG
SUBJECT: GEORGIA: GAS PIPELINE TO TSKHINVALI SERIOUSLY
DAMAGED, GEORGIANS UNABLE TO REPAIR WITHOUT ACCESS

Classified By: Ambassador John F. Tefft for reasons 1.4 (b) and (d).


1. (SBU) Summary: The Georgian Oil and Gas Company (GOGC)
cannot resume the movement of gas to South Ossetia until
unexploded ordnance is cleared and GOGC is given access to
repair the gas pipeline which runs from Agara to Tskhinvali
and on to Java. GOGC has already repaired all the damage to
the pipeline in areas that have been cleared of unexploded
ordnance that they can access. However, the Russians and
South Ossetians have not given GOGC access to any parts of
the pipeline within the disputed territory. In order to
return the pipeline to operational status, the mines and
unexploded ordnance must be removed and access granted to
engineers. Only after the entire line is physically examined
and repaired, and the pressure correctly increased to
necessary levels from both ends of the line, will gas be able
to flow. End Summary.


2. (C) Comment: While it is easy for the South Ossetians
and Russians to complain that Georgia is causing a
humanitarian crisis inside South Ossetia by depriving the
area of gas, our Georgian sources say that the ball is in the
Russian court. Neither Georgian government entities nor
international organizations, including OSCE and EUMM
monitors, have been able to access the separatist region.
Therefore, it is impossible to even gauge the scope of the
humanitarian situation in Tskhinvali and surrounding Georgian
villages since the conflict. Russia's commercial interest in
possibly repairing, and no doubt assuming ownership/
management of the gas pipeline from Agara to Java, is not a
surprise. Russian companies have even expressed interest in
&buying8 the Enguri power plant in Abkhazia, although it is
not necessarily the property of the Abkhaz or Russians to
sell. With regard to the gas pipeline to South Ossetia, the
Georgians argue that the Russians must first allow access to
Georgian engineers and agree to clear away unexploded
ordnance along the pipeline (to ensure the safety of the
engineers and nearby civilians in territory they control with
their South Ossetian allies). Only after this happens can
the pipeline be repaired and gas begin to flow. End comment.

WAR DAMAGE KNOCKS OUT THE PIPELINE


3. (SBU) According to the Director of the Georgian Oil and
Gas Corporation (GOGC),the gas pipeline from Agara to
Tskhinvali remains down, as a result of significant
structural damage suffered during the August conflict.
(Note: The Agara-Tskhinvali-Java high pressure pipeline
branches off of Georgia's main domestic East-West pipeline,
which in turn branches off of the major North-South gas line
between Russia and Armenia. End Note). The pipeline was
originally shut down on August 8. GOGC explained that
several fires and explosions near Gori damaged the trunk of
the main domestic line. Presumably, damage to the pipeline
to Tskhinvali occurred during the fighting in South Ossetia.


4. (SBU) Because South Ossetian and Russian forces are
denying access to South Ossetia, GOGC can not access the
pipeline to check exactly where the damage is located.
(Note: The Georgian Government, the OSCE monitoring mission
tasked with monitoring the situation in South Ossetia prior
to the conflict, as well as the European Monitoring Mission
(EUMM) and all other international organizations, have all
been denied access to all South Ossetian territory by Russian
and/or South Ossetian forces. End Note.) However, because
of unusual gas pressure readings, GOGC has been able to
Qof unusual gas pressure readings, GOGC has been able to
surmise that a significant gas leak exists somewhere north of
the village of Dirby, two km east within the administrative
boundary of South Ossetia and approximately 15 km southwest
of Tskhinvali. The pipeline is currently closed at the valve
near Dirby.

GAS LINE NEEDS TO BE INSPECTED AND REPRESSURIZED


5. (SBU) In order to re-establish the gas supply to
Tskhinvali and Java, GOGC says the entire length of the
pipeline north of Dirby must be physically inspected. Once
war damage and leaks are repaired, the pipeline must be shut
down at both ends and then re-pressurized. The gas pipeline
can only be put back into service after the pressure and
integrity of the pipeline are deemed safe. This cannot
happen without the cooperation of South Ossestian and Russian
forces -- something that has not materialized.

UNEXPLODED ORDNANCE REMAINS SERIOUS CONCERN


6. (SBU) GOGC is very concerned about unexploded ordnance
near the pipeline. If the pipeline were to be repressurized
and gas begins flowing without clearing the ordnance, even a
minor explosion could become huge if fueled by an unlimited
supply of natural gas. Such an explosion would endanger the
lives of civilians living near the pipeline, as well as any

TBILISI 00002426 002 OF 002


GOGC staff working on the pipeline. According to GOGC
Director General, his personnel could only inspect the full
line with access to the territory and with assurances that
all mines have been properly removed. Given recent snows in
the area, the ability to clear mines has been greatly reduced.

RUSSIAN INTEREST IN REPAIRING LINE?


7. (SBU) In conversations with the OSCE, the Georgian MFA
mentioned that the Russian ITERA company has supposedly
expressed interest in repairing the section of the pipeline
that runs through the disputed territory. However, this
would require the Georgian Government to hand over control of
the pipeline to the Russians, something it clearly does not
want do. In addition, government efforts to regulate and
control the ability of international business to operate in
South Ossetia and Abkhazia could also inhibit this kind of
"investment."
TEFFT