Identifier
Created
Classification
Origin
09ANKARA177
2009-02-04 15:20:00
CONFIDENTIAL
Embassy Ankara
Cable title:
TURKEY: NABUCCO DISCUSSIONS MOVING RIGHT ALONG
how-toVZCZCXRO2908 RR RUEHFL RUEHKW RUEHLA RUEHNP RUEHROV RUEHSR DE RUEHAK #0177 0351520 ZNY CCCCC ZZH R 041520Z FEB 09 FM AMEMBASSY ANKARA TO RUEHC/SECSTATE WASHDC 8679 INFO RUCNCIS/CIS COLLECTIVE RUEHZL/EUROPEAN POLITICAL COLLECTIVE RUEHIT/AMCONSUL ISTANBUL 5333 RUEUITH/ODC ANKARA TU RUEAIIA/CIA WASHDC RHEHAAA/NSC WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RHEBAAA/DEPT OF ENERGY WASHINGTON DC
C O N F I D E N T I A L ANKARA 000177
SIPDIS
EEB FOR ENERGY COORDINATOR MANN
EUR FOR DAS BRYZA
E.O. 12958: DECL: 02/04/2019
TAGS: ENRG EPET TU
SUBJECT: TURKEY: NABUCCO DISCUSSIONS MOVING RIGHT ALONG
REF: ANKARA 155
Classified By: Economic Counselor Dale Eppler for reasons 1.4 (B) and (
D)
C O N F I D E N T I A L ANKARA 000177
SIPDIS
EEB FOR ENERGY COORDINATOR MANN
EUR FOR DAS BRYZA
E.O. 12958: DECL: 02/04/2019
TAGS: ENRG EPET TU
SUBJECT: TURKEY: NABUCCO DISCUSSIONS MOVING RIGHT ALONG
REF: ANKARA 155
Classified By: Economic Counselor Dale Eppler for reasons 1.4 (B) and (
D)
1. (C) According to MFA Energy Department Head Berris
Ekinci, the pace of discussions on the Nabucco
Intergovernmental Agreement (IGA) is intensifying. The
government parties to the IGA (Turkey, Bulgaria, Romania,
Hungary, and Austria, with the EU as a facilitator) have
agreed to meet every two weeks until they reach agreement.
Vienna will host the next round of discussions (February 5-6)
and Ankara has offered to host the following session. MFA
Deputy Undersecretary Selim Kuneralp leads the Turkish
Delegation, which will also includes representatives from the
Ministry of Energy, BOTAS and the office of Turkey's Nabucco
Coordinator. While not revealing many specifics, Ekinci said
the GOT is seeking some additional articles within the IGA
that are specific to Turkey. The IGA, as an international
agreement, supersedes Turkey's domestic law, which means
Turkey could fast-track some legislative fixes if they are
included in the IGA. For example, the existing legal
restriction on creating new entities to import gas, from the
result of a partially implemented gas market liberalization
law, has kept Turkey from establishing a Turkish Nabucco
International Company. Ekinci believes a legal remedy
included in the IGA would be faster than Parliamentary action
on this issue.
2. (C) Echoing statements made by Energy Minister Guler in
Budapest on January 27, Ekinci said Turkey is seeking to host
a signing ceremony for the IGA in Istanbul within the next
six months. Turkey continues to seek a "project support
agreement" (PSA, formerly called a Host Country Agreement)
and insists that the PSA be signed in tandem with the IGA.
The purpose of the PSA is to acknowledge that Turkey has
legitimate needs for gas and that somehow the Nabucco project
should bring additional gas to Turkey, not just Europe. The
Nabucco partner companies (BOTAS, Bulgargaz, Transgaz, OMV,
MOL and RWE) are trying to come up with an acceptable
proposal, but Ekinci hinted that the parties are not close to
agreement.
3. (C) Comment: That the MFA has taken the lead in
negotiating the IGA is positive. Deputy U/S Kuneralp is a
knowledgeable, likable counterpart who understands Turkey's
broad interests in joining Europe. Negotiations on the PSA
are going to be difficult. The GOT's version of the PSA
still contains the infamous 15% formula for Turkey to keep
gas transiting the country. Turkey's insecurity about its
future gas supply is driving the PSA process. If the GOT can
strike a deal with Nabucco consortium companies or with
Azerbaijan directly for increased gas supply for Turkey's
domestic market, the PSA will likely wither away. End
comment.
Visit Ankara's Classified Web Site at
http://www.intelink.sgov.gov/wiki/Portal:Turk ey
Jeffrey
SIPDIS
EEB FOR ENERGY COORDINATOR MANN
EUR FOR DAS BRYZA
E.O. 12958: DECL: 02/04/2019
TAGS: ENRG EPET TU
SUBJECT: TURKEY: NABUCCO DISCUSSIONS MOVING RIGHT ALONG
REF: ANKARA 155
Classified By: Economic Counselor Dale Eppler for reasons 1.4 (B) and (
D)
1. (C) According to MFA Energy Department Head Berris
Ekinci, the pace of discussions on the Nabucco
Intergovernmental Agreement (IGA) is intensifying. The
government parties to the IGA (Turkey, Bulgaria, Romania,
Hungary, and Austria, with the EU as a facilitator) have
agreed to meet every two weeks until they reach agreement.
Vienna will host the next round of discussions (February 5-6)
and Ankara has offered to host the following session. MFA
Deputy Undersecretary Selim Kuneralp leads the Turkish
Delegation, which will also includes representatives from the
Ministry of Energy, BOTAS and the office of Turkey's Nabucco
Coordinator. While not revealing many specifics, Ekinci said
the GOT is seeking some additional articles within the IGA
that are specific to Turkey. The IGA, as an international
agreement, supersedes Turkey's domestic law, which means
Turkey could fast-track some legislative fixes if they are
included in the IGA. For example, the existing legal
restriction on creating new entities to import gas, from the
result of a partially implemented gas market liberalization
law, has kept Turkey from establishing a Turkish Nabucco
International Company. Ekinci believes a legal remedy
included in the IGA would be faster than Parliamentary action
on this issue.
2. (C) Echoing statements made by Energy Minister Guler in
Budapest on January 27, Ekinci said Turkey is seeking to host
a signing ceremony for the IGA in Istanbul within the next
six months. Turkey continues to seek a "project support
agreement" (PSA, formerly called a Host Country Agreement)
and insists that the PSA be signed in tandem with the IGA.
The purpose of the PSA is to acknowledge that Turkey has
legitimate needs for gas and that somehow the Nabucco project
should bring additional gas to Turkey, not just Europe. The
Nabucco partner companies (BOTAS, Bulgargaz, Transgaz, OMV,
MOL and RWE) are trying to come up with an acceptable
proposal, but Ekinci hinted that the parties are not close to
agreement.
3. (C) Comment: That the MFA has taken the lead in
negotiating the IGA is positive. Deputy U/S Kuneralp is a
knowledgeable, likable counterpart who understands Turkey's
broad interests in joining Europe. Negotiations on the PSA
are going to be difficult. The GOT's version of the PSA
still contains the infamous 15% formula for Turkey to keep
gas transiting the country. Turkey's insecurity about its
future gas supply is driving the PSA process. If the GOT can
strike a deal with Nabucco consortium companies or with
Azerbaijan directly for increased gas supply for Turkey's
domestic market, the PSA will likely wither away. End
comment.
Visit Ankara's Classified Web Site at
http://www.intelink.sgov.gov/wiki/Portal:Turk ey
Jeffrey