KAZAKHSTAN: U.S.-KAZAKHSTAN ENERGY PARTNERSHIP MEETING

UNCLAS SECTION 01 OF 03 ASTANA 001814 SIPDIS STATE FOR SCA/CEN, EEB/ESC STATE PLEASE PASS TO USTDA E.O. 12958: N/A TAGS: PGOV PREL ECON ENRG EPET MNUC KNNP KZ SUBJECT: KAZAKHSTAN: U.S.-KAZAKHSTAN ENERGY PARTNERSHIP MEETING JOINT ACTION PLAN ASTANA 00001814 001.3 OF 003 ¶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 ASTANA 00001814 002.3 OF 003 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. ASTANA 00001814 003.3 OF 003 --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