Identifier
Created
Classification
Origin
09ASHGABAT433
2009-04-07 12:52:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:  

TURKMENISTAN: PROGRESS VISIBLE ON SEVERAL NEW GAS

Tags:  PGOV EPET EINV TX IR 
pdf how-to read a cable
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PP RUEHAG RUEHBI RUEHCI RUEHDBU RUEHLH RUEHPW RUEHROV RUEHSR
DE RUEHAH #0433/01 0971252
ZNY CCCCC ZZH
P 071252Z APR 09
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 2605
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
RUCNCIS/CIS COLLECTIVE PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 5043
RUEHBJ/AMEMBASSY BEIJING PRIORITY 2796
RUEHKO/AMEMBASSY TOKYO PRIORITY 2661
RUEHIT/AMCONSUL ISTANBUL PRIORITY 3287
RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RHEFDIA/DIA WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000433 

SIPDIS

SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER

E.O. 12958: DECL: 04/07/2019
TAGS: PGOV EPET EINV TX IR
SUBJECT: TURKMENISTAN: PROGRESS VISIBLE ON SEVERAL NEW GAS
FACILITIES NORTH OF TURKMENBASHY

Classified By: Deputy Chief of Mission Sylvia Reed Curran for reasons 1
.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000433

SIPDIS

SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER

E.O. 12958: DECL: 04/07/2019
TAGS: PGOV EPET EINV TX IR
SUBJECT: TURKMENISTAN: PROGRESS VISIBLE ON SEVERAL NEW GAS
FACILITIES NORTH OF TURKMENBASHY

Classified By: Deputy Chief of Mission Sylvia Reed Curran for reasons 1
.4 (b) and (d).


1. (C) SUMMARY: A recent trip up along the coastline north
from the port city of Turkmenbashy revealed that construction
work on several natural gas projects is proceeding apace.
Malaysian energy company Petronas has several projects
underway about 20 kilometers north of Turkmenbashy, including
a facility that will build offshore service platforms and
repair offshore rigs, as well as a gas facility that will
process associated gas from Petronas' offshore oil wells.
Iranian company Pars Energy's liquefied gas shipment facility
also appears to be on target for completion before a 2010
deadline, although there are no signs yet of the railway that
is to connect the facility to the Turkmenbashy refinery.
Although it is uncertain when these facilities will begin to
receive gas supplies, it appears that Turkmenistan is getting
the infrastructure that it needs to capture both the oil and
gas riches of its part of the Caspian. END SUMMARY.


2. (C) Poloff traveled by road from Turkmenbashy to
Guwlymayak along the Caspian coast to get a look at the oil
and gas infrastructure development taking place along this
godforsaken stretch of sand dune acreage. There is little to
see along this one lane road that eventually leads to the
southwestern Kazakhstan border, beyond two or three tiny,
forgotten Turkmen villages and a Russian Orthodox cemetery.
Several former or current salt pans are still visible just to
the east of the roadway, although most have been abandoned.
The village of Guwlymayak is comprised of a handful of
crumbling houses clustered around a small salt processing
facility that dates to the Soviet era. This place still
produces the domestic table salt that remains one of the
social subsidies in Turkmenistan.


3. (C) About 20 kilometers north of Turkmenbashy, situated
on the coast just above the tiny village of Kiyanly, several
new facilities that Malaysian energy company Petronas is
building are now visible. Poloff saw a logistics base that,
according to local press, will be supporting the construction
of floating service platforms that will be used to repair and
assemble offshore oil and gas rigs. Just north of it lies
the construction site of Petronas' gas processing and storage
plant, around which intense construction activity was
apparent. The plant is supposed to be completed by 2010,
according to local press. (NOTE: Petronas' offshore Block I
fields are not expected to produce modest quantities of
associated gas for at least another 3-4 years. END NOTE.)


4. (C) A kilometer or two up the road poloff saw the new
liquefied gas storage and shipment facility that the Iranian
company, Pars Energy, is building here. Pars' April 2008
contract with the Turkmenbashy refinery included construction
of a liquefied gas shipment facility and a modern marine
terminal (dock) where liquefied gas could be transferred to
ships for transport elsewhere in the Caspian Sea. The dock
appeared to be in the final stages of completion, and
spherical gas storage tanks were in place, although there
appeared to be little activity around the site. (NOTE:
According to local press, the Pars facility is due to be
completed by April 2010. END NOTE.)


5. (C) The deal with Pars also included construction of a
rail line connecting the marine terminal by rail with the
Turkmenbashy oil refinery. There was no evidence that the
rail line's construction had started. All of the new
facilities at Kiyanly reportedly are to create some 3,000
jobs for Turkmen, although the sites are so remote that a
special bus service would have to be established between them

ASHGABAT 00000433 002.2 OF 002


and Turkmenbashy city.


6. (C) On the north side of the roadway leading to the Pars
site, also positioned on the water's edge, there appeared to
be a possible military facility. Poloff had earlier
transited a border checkpoint on the main road just below
Kiyanly, and noticed that those posted there were in black
naval uniforms rather than the usual border guard uniforms.


7. (C) COMMENT: The Petronas and Pars projects are coming
along, and will likely be finished by established deadlines.
What is less certain is when pipelines will be built that
connect existing offshore fields to the new coastal gas
facilities in Kiyanly. Regardless, the Turkmen government
appears to be getting the infrastructure it wants so that it
can capture both oil and gas that is being extracted
offshore. END COMMENT.
MILES