NETHERLANDS: INITIAL REACTION TO THE PRESIDENT'S

C O N F I D E N T I A L THE HAGUE 000936

SIPDIS

E.O. 12958: DECL: 11/06/2018
TAGS: ENRG PREL NL
SUBJECT: NETHERLANDS: INITIAL REACTION TO THE PRESIDENT'S
ENERGY SECURITY LETTER

Classified By: DCM Michael Gallagher, reasons 1.4 (b) and (d)


1. (C) SUMMARY: Post's key Dutch government contacts on
energy informally tell us they agree on the importance of all
the points raised in President Bush's letter to Prime
Minister Balkenende: securing Caspian gas supply to Europe
via non-Russian controlled routes; enforcing and
strengthening EU competition laws in the energy sector; and
improving energy interconnections between EU members. The
Dutch are preparing a written response. END SUMMARY.


2. (C) Post passed President Bush's Eurasian energy security
letter to Prime Minister Balkenende on October 23.
Subsequently, Econoff shared a copy of the letter with
Jan-Meinte Postma, Energy Envoy of the Minister of Economy,
and Femke Hoogeveen, Senior Policy Advisor for Energy,
Ministry of Foreign Affairs. Postma travels frequently to
Central Asia, North Africa, and the Middle East to promote
Dutch bilateral energy interests and prepare for Economic
Affairs Minister Maria van der Hoeven's visits to the region.
(Note: Postma had recently returned from Algeria, where he
was preparing for Van der Hoeven's early 2009 trip there.
The Dutch hope to sign a supply contract for LNG at that
time. End note.)


3. (C) Postma agreed with all the points in the letter and
assured Econoff the Dutch are on board and trying to engage
on these issues. He said he would follow up with Van der
Hoeven regarding concrete next steps Dutch can undertake to
provide further support. (Note: MEA has lead responsibility
for energy issues in the Dutch government. End note.) He
said supply concerns in Central Asia do not revolve around
the amount of natural gas reserves or how to lift the gas out
of ground, but rather the "evacuability" of the gas -- the
ability to transport it out of Central Asia. He cautioned
that some countries along the southern corridor gas route are
suffering from crisis fatigue, as Nabucco always seems to be
at "critical juncture."


4. (C) Postma took the opportunity to reiterate Dutch dismay
at the September editorial written by the U.S. Ambassador to
Sweden raising objections to the Nordstream pipeline. Postma
called the editorial "irresponsible, unhelpful, and
incorrect." Postma maintained that Nordstream will bring new
gas to Europe -- not redirect existing supplies -- to satisfy
a big portion of inevitable European demand increases.
(Note: Gas transport company Gasunie, 100% owned by the Dutch
government, has a 9% stake in Nordstream. End note.)


5. (C) Hoogeveen also found nothing controversial, from the
Dutch government's point of view, in the letter. She said
the Foreign Ministry is coordinating a written response. She
said there was not so much the Dutch could do directly to
assuage Turkish energy supply concerns, although they do have
some bilateral working-level technical cooperation.

CULBERTSON