Identifier
Created
Classification
Origin
09BRUSSELS768
2009-06-03 15:08:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
USEU Brussels
Cable title:
EU: RESPONSE TO DEMARCHE ON IRAN AS AN ENTRY POINT
how-toVZCZCXRO9568 RR RUEHAG RUEHAST RUEHDF RUEHDH RUEHHM RUEHIK RUEHLN RUEHLZ RUEHMA RUEHPB RUEHPOD RUEHROV RUEHSR RUEHTM RUEHTRO DE RUEHBS #0768 1541508 ZNR UUUUU ZZH R 031508Z JUN 09 FM USEU BRUSSELS TO RUEHC/SECSTATE WASHDC INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE RUCNMEU/EU INTEREST COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUEHAK/AMEMBASSY ANKARA RUEHAH/AMEMBASSY ASHGABAT RUEHGB/AMEMBASSY BAGHDAD RUEHKB/AMEMBASSY BAKU RUEHSI/AMEMBASSY TBILISI
UNCLAS BRUSSELS 000768
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EPET EUN IR IZ TU
SUBJECT: EU: RESPONSE TO DEMARCHE ON IRAN AS AN ENTRY POINT
FOR NABUCCO
REF: STATE 54469
Sensitive but Unclassified - not for Internet distribution.
UNCLAS BRUSSELS 000768
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EPET EUN IR IZ TU
SUBJECT: EU: RESPONSE TO DEMARCHE ON IRAN AS AN ENTRY POINT
FOR NABUCCO
REF: STATE 54469
Sensitive but Unclassified - not for Internet distribution.
1. (SBU) On June 2, 2009 Econ Officer delivered reftel
demarche to EU Commission officials Heinz Hilbrecht, Director
for Security of Supply and Energy Markets at DG-TREN, and
Brendan Devlin, Principal Administrator under Hilbrecht
charged with shepherding the Nabucco Intergovernmental
Agreement (IGA) negotiations. Hilbrecht and Devlin
understood U.S. concerns over the inclusion of Iran as a
named entry point under the Nabucco IGA. They shared,
however, that the wording of the IGA had already been changed
to a more generic wording that includes no mention of Iran.
After last week's negotiations in Vienna, the text on entry
points has been changed to read: "'Initial Entry Points'
shall mean the starting points for the Nabucco Project at any
(three) points on the eastern or southern land borders of the
Republic of Turkey as selected by Nabucco International
Company, and, subject to the agreement by the Nabucco
Committee in consultation with Nabucco International Company,
any other points at the eastern or southern Turkish Border."
2. (SBU) Hilbrecht indicated that the current text reflects
concerns over the inclusion of Iran as a named entry point as
well as concerns raised by Turkey over the inclusion of Iraq
as a named entry point. Devlin indicated that the Commission
was disappointed by Turkey's move to exclude Iraqi gas
supplies from Nabucco and said the EU would appreciate USG
help to facilitate Iraq's connection to Nabucco, at Nabucco
tariff prices, not at a price worked out bilaterally between
Turkey and Iraq. Devlin stressed that the U.S. and the EU
need to keep close contact on this as the Nabucco 50 percent
third party access allows any third company to book capacity,
and there are no restrictions. Theoretically, an Iranian
company could book capacity and Nabucco International could
do nothing about it. The key issue will be the amount of
demand at each potential entry point; if there is lots of
Iraqi demand, then Iran is off the table (on the assumption
that eventually there are only two initial entry points) -
the other entry point would be Georgia.
3. (SBU) Comment. While true that Nabucco International
could not deny capacity to any shipper, including from Iran,
this would not preclude the U.S. from pursuing diplomatic
initiatives with Member States to discourage any such
purchases. End Comment.
Davis
.
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EPET EUN IR IZ TU
SUBJECT: EU: RESPONSE TO DEMARCHE ON IRAN AS AN ENTRY POINT
FOR NABUCCO
REF: STATE 54469
Sensitive but Unclassified - not for Internet distribution.
1. (SBU) On June 2, 2009 Econ Officer delivered reftel
demarche to EU Commission officials Heinz Hilbrecht, Director
for Security of Supply and Energy Markets at DG-TREN, and
Brendan Devlin, Principal Administrator under Hilbrecht
charged with shepherding the Nabucco Intergovernmental
Agreement (IGA) negotiations. Hilbrecht and Devlin
understood U.S. concerns over the inclusion of Iran as a
named entry point under the Nabucco IGA. They shared,
however, that the wording of the IGA had already been changed
to a more generic wording that includes no mention of Iran.
After last week's negotiations in Vienna, the text on entry
points has been changed to read: "'Initial Entry Points'
shall mean the starting points for the Nabucco Project at any
(three) points on the eastern or southern land borders of the
Republic of Turkey as selected by Nabucco International
Company, and, subject to the agreement by the Nabucco
Committee in consultation with Nabucco International Company,
any other points at the eastern or southern Turkish Border."
2. (SBU) Hilbrecht indicated that the current text reflects
concerns over the inclusion of Iran as a named entry point as
well as concerns raised by Turkey over the inclusion of Iraq
as a named entry point. Devlin indicated that the Commission
was disappointed by Turkey's move to exclude Iraqi gas
supplies from Nabucco and said the EU would appreciate USG
help to facilitate Iraq's connection to Nabucco, at Nabucco
tariff prices, not at a price worked out bilaterally between
Turkey and Iraq. Devlin stressed that the U.S. and the EU
need to keep close contact on this as the Nabucco 50 percent
third party access allows any third company to book capacity,
and there are no restrictions. Theoretically, an Iranian
company could book capacity and Nabucco International could
do nothing about it. The key issue will be the amount of
demand at each potential entry point; if there is lots of
Iraqi demand, then Iran is off the table (on the assumption
that eventually there are only two initial entry points) -
the other entry point would be Georgia.
3. (SBU) Comment. While true that Nabucco International
could not deny capacity to any shipper, including from Iran,
this would not preclude the U.S. from pursuing diplomatic
initiatives with Member States to discourage any such
purchases. End Comment.
Davis
.