VZCZCXRO3224
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHMO #5701 3381514
ZNR UUUUU ZZH
P 041514Z DEC 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 5672
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS MOSCOW 005701 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT 
EUR/CARC, SCA (GALLAGHER, SUMAR) 
DOE FOR HARBERT, HEGBORG, EKIMOFF 
DOC FOR 4231/IEP/EUR/JBROUGHER 
 
E.O. 12958: N/A 
TAGS: EPET ENRG ECON PREL RS TX
SUBJECT: EMBASSY OF TURKMENISTAN REITERATES:  "WE ONLY SELL 
GAS AT THE BORDER" 
 
REF: A. ASHGABAT 1297 
     ¶B. MOSCOW 5563 
     ¶C. ASHGABAT 1283 
 
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SUMMARY 
------- 
 
¶1. (SBU) Embassy of Turkmenistan Econ Counselor Murat 
Yazberdiyev reiterated to us November 30th that Turkmenistan 
is only interested in selling gas "at the border."  That 
said, Turkmenistan had no objections to others either 
improving existing pipelines or building new ones through 
which to export Turkmen gas.  He was confident Turkmenistan 
would have the gas to fill its commitments.  End summary. 
 
--------------------------------------- 
"TOO COMPLICATED TO SELL BEYOND BORDER" 
--------------------------------------- 
 
¶2. (SBU) In a November 30th meeting at the Embassy of 
Turkmenistan, Econ Counselor Murat Yazberdiyev said his 
country is "not interested in investing in pipelines and 
projects outside its borders."  He said "it is too 
complicated to sell beyond the border," citing 
intergovernmental agreements, legal issues, and contract 
negotiations as examples of potential difficulties.  On the 
agreement to increase gas prices to Russia (refs A and B), he 
added that there was also an "oral agreement" to increase 
volumes, but he did not elaborate. 
 
------------------------------- 
BUT PROLIFERATING EXPORT ROUTES 
------------------------------- 
 
¶3. (SBU) Yazberdiyev said the recent announcement related to 
construction of a new gas pipeline along the Caspian to 
Russia (ref A) was "just a declaration" of a project on which 
both sides had previously agreed; "no new documents were 
signed."  However, the new pipeline would add another 30 bcm 
of export capacity north, and its construction was expected 
to begin in the second half of 2008.  He added that 
Turkmenistan and Gazprom are also upgrading the existing 
pipeline to Russia, increasing its capacity from 40-45 bcm to 
80 bcm. 
 
¶4. (SBU) Yazberdiyev said the expected 30 bcm pipeline east 
that China plans to build should be completed by the end of 
2009, with Kazakhstan and Uzbekistan contributing volumes. 
He also volunteered that Turkmenistan and Iran are working 
together to increase from 8 bcm to 14 bcm the volume of gas 
sales via pipeline to Iran.  Finally he called the 
Trans-Caspian pipelines, Nabucco and South Stream "just 
pieces of paper" for now. 
 
-------------------- 
IS THERE ENOUGH GAS? 
-------------------- 
 
¶5. (SBU) Yazberdiyev was not concerned about Turkmenistan's 
ability to produce the needed gas, explaining that 
Turkmenistan produced 93 bcm at its peak during Soviet times, 
that internal consumption is just 10 bcm, and that the 
country is optimistic about its untapped potential. 
 
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COMMENT 
------- 
 
¶6. (SBU) For Turkmenistan to become more interested in 
sending gas west, it would likely need to boost production. 
It would also have to contend with Russian opposition. 
However, Russia's grip on Turkmen gas will weaken as other 
routes come on line or are upgraded.  End comment. 
BURNS