KAZAKHSTAN: U.S.-KAZAKHSTAN ENERGY PARTNERSHIP MEETING

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SUBJECT: KAZAKHSTAN: U.S.-KAZAKHSTAN ENERGY PARTNERSHIP MEETING
JOINT ACTION PLAN

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1. (U) On October 7-8, the United States and Kazakhstan held the
sixth meeting of the U.S.-Kazakhstan Energy Partnership. Four
working groups -- nuclear security and nuclear power, oil and gas,
renewable energy and energy efficiency, and electric power -- took
place. After chairing a plenary session on October 8, U.S. Deputy
Secretary of Energy Daniel Poneman and Kazakhstan's Minister of
Energy and Mineral Resources Sauat Mynbayev signed a joint action
plan, below, and a joint statement (septel).


2. (U) Begin text:

United States-Kazakhstan Energy Partnership Meeting Summary Joint
Action Plan

Kazakhstan and the United States share a long and successful history
of cooperation in the energy sector. Our mutual objective is to
strengthen and broaden this collaboration through the work of the
U.S.-Kazakhstan Energy Partnership, jointly co-chaired since its
inaugural meeting in 2001 by the leadership of the U.S. Department
of Energy and the Kazakhstan Ministry of Energy and Mineral
Resources. Both sides agree that in order to strengthen our
bilateral relationship, we need specific actions to match our shared
goals.

As part of our sixth meeting, we plan to build upon our success and
work together to promote energy efficiency, clean energy
technologies, diversification of energy sources, and
investment-friendly regulatory environments. We intend to continue
our commitment to nuclear nonproliferation and to the safe and
secure use of nuclear energy. This meeting reflects the strategic
vision of President Nazarbayev and President Obama on our respective
energy strategies. In the spirit of deepening our bilateral energy
cooperation, this Summary Joint Action Plan serves as a guideline
for detailed work plans. The co-chairs task the Working Groups to
develop these plans within two months of the signing of this Summary
Joint Action Plan.

The following are next steps for collaboration in four areas:
Nuclear Security and Nuclear Power; Oil and Gas; Renewable Energy
and Energy Efficiency; and Electric Power.

NUCLEAR SECURITY AND NUCLEAR POWER

The United States and Kazakhstan intend to continue effective
collaboration to combat the threat of nuclear weapons proliferation.
We see important opportunities to work together on civil nuclear
energy issues. We plan to have a successful achievement of our
common goals through the following:

Next steps:

--The Ministry of Energy and Mineral Resources (MEMR) of the
Republic of Kazakhstan plans to seek funding in 2011 and 2012 for
the construction of the Geocement Stone Facility, the sodium
project, under the BN-350 Breeder Reactor Decommissioning Program.

--MEMR and the U.S. Department of Energy (DOE) finish loading of the
TUK-123 casks with spent fuel of BN-350 and complete the movement of
the casks to the Baikal-1 storage facility by the end of 2010.

--MEMR and DOE continue work to finish the conversion of the
research reactor VVR-K at the Institute of Nuclear Physics from
highly-enriched uranium (HEU) fuel to low-enriched uranium (LEU)
fuel in 2014.

--DOE and MEMR transfer the HEU bulk material at the Institute of
Nuclear Physics to Ulba Metallurgical Plant for down-blending no
later than the agreed upon schedule (May 2012, provided that all
related activities were completed on schedule) while also examining
opportunities to expedite completion of the project.

--MEMR plans to identify initial safeguards cooperation activities

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by the end of calendar year 2009, such as training programs,
workshops, or planning meetings. By the end of 2010, DOE intends to
submit a draft Safeguards and Cooperation Agreement for the
Kazakhstan Ministry of Energy and Mineral Resources (MEMR) to
consider..

--By the end of December 2009, DOE intends to submit proposals to
establish a working group in 2010 to plan a technical-expert
exchange program to share best practices at civilian nuclear
energy-related facilities and explore ways to expand U.S.-Kazakhstan
cooperation on small and medium-scale reactor development for the
Kazakhstan market.

--DOE and MEMR will hold a meeting in November 2009 to discuss
Statements of Work for establishment of a Regional Training Center
at the Institute of Nuclear Physics.

--DOE and MEMR identify a date and location by March 2010 to execute
fixed-site guard-force training by the end of calendar year 2010.

OIL AND GAS

We confirm our commitment to our Energy Partnership, which continues
to support Kazakhstan's role as one of the world's leading reliable
suppliers of energy. Our Energy Partnership aims to develop further
cooperation between international and Kazakhstan companies in the
exploration, development, and transportation of Kazakhstan's
hydrocarbon resources, as well as in the development of a commercial
nuclear energy sector. We pledge to advance common efforts to
expand global energy supplies and seek new means to deliver those
resources to the international market. The establishment of
transparent, competitive, market-based energy sectors will enhance
global energy security and support our mutual efforts to combat
climate change. Both sides share the view that liberalization and
diversification of our energy sectors will help us achieve our
shared energy security goals.

Next steps:

--Both sides will facilitate access for Central Asian hydrocarbon
production to international markets using multiple,
commercially-viable routes. Both sides will support the development
of a safe, reliable, and commercially-viable Kazakhstan Caspian
Transportation System (KCTS) and expansion of the Caspian Pipeline
Consortium (CPC).

--DOE and the Environmental Protection Agency will facilitate
technical dialogue and knowledge exchange to expand Kazakhstan's
participation in the Methane-to-Markets initiative to reduce methane
emissions and increase natural gas output, including associated
gas.

--DOE will share a draft proposal for the MEMR's consideration by
December 2009 that will contain a range of appropriate options for
the assessment of Kazakhstan's critical energy infrastructure,
including the electric power sector.

RENEWABLE ENERGY AND ENERGY EFFICIENCY

We share a commitment to reinvigorate our cooperation in renewable
energy and energy efficiency. We plan to cooperate and exchange
information in several areas including, but not limited to,
industrial energy efficiency auditing and retrofitting; wind energy
resource mapping; and renewable energy policy implementation and
economic valuation.

Next steps:

--DOE and the MEMR will share information and convene seminars on
best practices with renewable energy policy design and
implementation and share perspectives on the economic value of
renewable energy development for Kazakhstan.

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--DOE and the MEMR will also facilitate ongoing information exchange
among technical experts on these renewable energy policy and
economic valuation issues.

--With Kazakhstan's approval, DOE intends to provide training
programs and expert assistance on ways to support development of a
robust industrial efficiency auditing and retrofit program in
Kazakhstan, including the adaption of technical materials from the
DOE Save Energy Now program.

--If funding is available from the U.S. government, DOE is prepared
to develop and provide training programs on a geo-spatial analysis
tool that will overlay wind resource data with land-use,
transmission lines, electricity load, and other geographic data to
identify the most promising sites for wind development and educate
policy officials, planners, and developers on these opportunities.

--Before December 2009, DOE plans to begin sharing information and
expertise on energy-efficient and earthquake-resistant building
materials and building standards and labeling, materials
certification, education and outreach, and demonstration projects.


ELECTRIC POWER

In order to incorporate new technologies in Kazakhstan's
electric-power sector, we intend to expand our cooperation to
improve regional integration and domestic power transmission
reliability. This in turn will facilitate dispatch optimization,
strengthen regional cooperation, and improve conditions for
investment in new generation capacities and other sector assets.

Next steps:

--USAID will support the MEMR's efforts to develop a national and
regional regulatory and market-based regimes, including relevant
institutions, to increase opportunities for electric-power trade in
a liberalized national and regional market environment in
Kazakhstan.

--USAID will support the conceptual development of a framework on
the establishment of an integrated power market with neighboring
countries.

--By December 2009, DOE will share best practices and expertise on
phasors and other new technologies, including U.S. and Kazakh
business entities as appropriate, to help improve the reliability of
Kazakhstan's electricity grid.

--Both sides will jointly support dialogue within Central Asia on
the rational and efficient use of the region's water and energy
resources.

--Both sides will jointly support improvements in the technical
capacities of Central Asia's national Transmission System Operators.


We pledge to continue our work on the Energy Partnership as
specified in this Summary Joint Action Plan. We express firm
confidence that an enhanced Energy Partnership between our countries
will promote prosperity and energy security in the 21st Century. We
agree to hold the next meeting of the Energy Partnership in
Washington, DC, in 2010. The exact date of the meeting will be
agreed through diplomatic channels.

SIGNED at Astana, in duplicate, on October 8, 2009, in the English
and Russian languages by U.S. Deputy Secretary of Energy Daniel
Poneman and the Republic of Kazakhstan's Minister of Energy and
Mineral Resources Sauat Mynbayev.

HOAGLAND