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FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1277
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 5068
RUEHKB/AMEMBASSY BAKU 0191
RUEHBW/AMEMBASSY BELGRADE 0769
RUEHMO/AMEMBASSY MOSCOW 0976
RUEHRO/AMEMBASSY ROME 4335
RUEHSQ/AMEMBASSY SKOPJE 1149
RUEHSF/AMEMBASSY SOFIA 1590
RUEHTI/AMEMBASSY TIRANA 1311
RUEHTH/AMCONSUL THESSALONIKI 1797
RHMFISS/DEPT OF ENERGY WASHINGTON DC

C O N F I D E N T I A L SECTION 01 OF 02 ATHENS 000262 
 
SIPDIS 
 
C O R R E C T E D C O P Y (TEXT IN PARA 6) 
 
NOFORN 
SIPDIS 
 
E.O. 12958: DECL: 02/24/2018 
TAGS: ENRG GR
SUBJECT: PROMETHEUS GAS CHAIRMAN: NO SOUTHSTREAM THROUGH 
GREECE IN NEAR FUTURE 
 
ATHENS 00000262  001.2 OF 002 
 
 
Classified By: Ambassador Daniel V. Speckhard for reasons 
1.4 (b) and (d) 
 
Summary 
------- 
 
¶1.    (C) Prometheus Gas Chairman Dimitri Copelouzos told the 
Ambassador and the acting Economic Deputy in a meeting on 
February 15 that he does not see Gazprom moving ahead with 
Southstream through Greece for many years.  Copelouzos also 
indicated Prometheus Gas could supply another 3 bcm to Greece 
via Bulgaria in as little as eight months at a cost of 50 
million euros.  Other highlights of the meeting include a 
discussion of the Copelouzos Group's business activities in 
Greece and the Balkans; Russian energy activities in Greece, 
including the Gazprom/DEPA energy supply agreement; and the 
Trans-Adriatic Pipeline.  End Summary. 
 
Copelouzos Group Investments in Greece and the Balkans 
--------------------------------------------- --------- 
 
¶2.    (C) Copelouzos, who is also the Chairman and Managing 
Director of the Copelouzos Group of Companies was joined by 
his General Manager, Ioannis Karydas, in a meeting with the 
Ambassador and the acting Economic Deputy on February 15. 
Copelouzos informed the Ambassador that his Group's 
investments in Greece are focused in the energy sector and 
laid out his major investment projects.  According to 
Copelouzos, his group has built approximately 65 to 70 
percent of all power plants (hydro, diesel, lignite and 
combined cycle) in Greece.  In addition, eight months ago, 
Copelouzos Group won a government tender to build the 
country's first fully privately-owned power plant. 
Copelouzos hopes to execute the contract with the government 
for the 400 MW plant within the next 15 days; however, he 
expressed some frustration that the government has dragged 
its heels for several months.  (Comment: New power plants 
such as those Copelouzos described have a potentially 
important role in promoting our Southern Corridor Strategy. 
They represent the first significant expansion in Greek 
domestic gas demand in the coming years.  End Comment.) 
 
¶3.    (C) Copelouzos also told the Ambassador that his group 
is a leader in photovoltaic energy in Greece.  His group 
hopes to have a photovoltaic plant near Patras on-line in as 
soon as eleven months.  The Group,s other activities in 
Greece include selling natural gas and investing in mixed 
projects with the Greek state, including the new airport and 
the suburban rail extension to the airport.  Most recently, 
the Copelouzos Group has engaged with the GOG to build a new 
casino and resort near the new airport.  Copelouzos described 
the concept as a &mini Las Vegas,8 and indicated that the 
government might publish a tender for Greece's second casino 
license within the next six months.  He believes the 
investment will be good for Greece and will increase usage of 
the urban rail, which currently is underutilized. 
 
¶4.    (C) Copelouzos Group is very active elsewhere in the 
Balkans as well.  The Group has invested in a power plant in 
Bulgaria together with the Bulgarian National Electric 
Company (NEC).  In Albania, the Group recently won a tender 
for a 200 MW diesel power plant and is negotiating with the 
government for a 300 MW combined cycle plant near the Greek 
border.  (Comment: This plant potentially would be fed with 
gas coming off a spur from TGI.  End Comment.)  The Group is 
looking for an American company to co-invest in the latter 
project.  Copelouzos,s firm is actively pursuing investments 
in Macedonian power plants, but he does not believe the GOM 
is ready yet for serious negotiations, despite the country's 
considerable need for additional electricity. 
 
Southstream 
----------- 
 
¶5.    (C) The Ambassador probed Copelouzos on his thoughts 
regarding Southstream.  Copelouzos indicated that the 
Russians are thinking seriously about Southstream, and the 
project is a priority for Gazprom as it continues to look for 
more ways to export its gas.  According to Copelouzos, the 
 
ATHENS 00000262  002.2 OF 002 
 
 
Russians have already signed agreements with Bulgaria and 
Serbia for the export of gas.  Copelouzos believes that these 
and other countries are eager to sign agreements with Gazprom 
due to transit disputes between Turkey and Azerbaijan.  When 
pushed on the issue of whether Gazprom desires to own a 
pipeline in Greece, Copelouzos responded that Gazprom has 
proposed a line through Greece to Italy, but that the 
Russians hve already made a deal with Serbia for export of 
their gas to Central Europe.  Gazprom has not signed anything 
with the Greeks. 
 
¶6.    (C) Copelouzos stated that he likes the idea of 
Southstream in Greece because it will bring in more gas and 
building the pipeline could be an important project for his 
company.  That said, he indicated that a submarine pipeline 
and another line to Italy does not make sense.  The Ambassador 
thanked Copelouzos for this infrmation and emphasized the USG's 
strong support for TGI through Greece. Copelouzos added that 
it does not make sense for Gazprom to build several lines 
in the near future.  In his opinion, Southstream would not 
be realized for many years. 
 
Gas Supplies for Greece 
----------------------- 
 
¶7.    (C) In response to the Ambassador's question about 
whether the GOG has signed a new agreement to double Gazprom 
gas supplies to Greece, Copelouzos responded that the current 
agreement for 3 bcm expires in 2016.  He explained that 
Copelouzos Group,s joint venture with Gazprom, Prometheus 
Gas S.A., could provide another 3 bcm to Greece for the first 
time this year because DEPA (Greece's public gas supply 
corporation) has sold all its gas already.  The extra 3 bcm 
could be delivered to Greece via Bulgaria, according to 
Copelouzos.  As is, the current pipeline could deliver an 
extra500 mcm.  The remainder of the extra 3 bcm could be 
delivered with adjustments to the pipeline that would cost 
approximately 50 million euros and take up to eight months. 
 
Trans-Adriatic Pipeline (TAP) 
----------------------------- 
 
¶8.    (C) When questioned by the Ambassador about the TAP, 
Copelouzos responded that there are many pipelines reported 
on in the news, but that the Turkey-Greece-Italy pipeline is 
the true pipeline.  He stated that he does not know when it 
might be possible to execute the TAP, but that ultimately, it 
would depend upon the gas supply from Turkey.  Copelouzos 
indicated that for an 11 bcm line to be built, one needs both 
supply and demand. 
 
A Note on Diversification 
------------------------- 
 
¶9.    (C) The Ambassador concluded the meeting by stating 
that the U.S. was very interested in the energy sector in 
Greece and the region, and that it was our hope that the 
sector would remain transparent and open to competition.  He 
stated that the U.S. has no issue with Russia or Gazprom as a 
major supplier to Europe and Greece.  However, we feel 
strongly that there needs to be diversification in energy 
suppliers and routes.  Copelouzos concluded by saying that 
his company will buy gas from whomever has the better price. 
SPECKHARD