VZCZCXRO4965
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHTC #0056/01 0171335
ZNR UUUUU ZZH
P 171335Z JAN 08
FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC PRIORITY 0934
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 THE HAGUE 000056 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/WE, EUR/ERA, EEB/ESC/IEC 
USDOC FOR 4212/USFS/MAC/EURA/OWE/DCALVERT 
 
E.O. 12958: N/A 
TAGS: ENRG EPET NL
SUBJECT: SECURING A DUTCH GAS HUB IN EUROPE 
 
REF: 07 THE HAGUE 1999 
 
THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED.  PLEASE HANDLE 
ACCORDINGLY. 
 
¶1.  (SBU)  SUMMARY.  The Dutch energy firm Gasunie's 
participation in the Nordstream pipeline project and its 
acquisition of the German BEB gas network is expected to 
strengthen the Netherlands' position as a major European gas 
hub.  The Dutch question Russia's ability to finance pipeline 
investment/renovation and green field development, viewing 
this as a greater risk to European energy supplies than 
Russia's possible use of energy supplies for political ends. 
To diversify its energy sources, however, the Netherlands 
plans to build three LNG terminals in the country and further 
develop relations with other supplier countries.  END SUMMARY. 
 
Exploiting Dutch Gas Reserves 
----------------------------- 
 
¶2.  (SBU)  As a follow up to reftel discussions on the 
November 6 Gasunie-Gazprom Nordstream deal, Emboffs met 
recently with Bert Roukens, a Senior Advisor responsible for 
energy security and energy market liberalization at the Dutch 
Ministry of Economic Affairs.  The Netherlands, Roukens said, 
had long been developing an infrastructure that would allow 
it to exploit its gas reserves and establish the country as a 
main gas transit hub for Europe.  He explained that Dutch 
energy company Gasunie's decision to join the Russian firm 
Gazprom in the Nordstream pipeline project (see reftel) was 
seen as "safeguarding" this role.  Gasunie's November 23 
purchase of the German firm BEB's gas transport division had 
further strengthened the Dutch position by securing physical 
connections with both the Nordstream pipeline across the 
Baltic and the landing point for Norwegian gas in northern 
Germany.  This latter acquisition also offset concerns about 
the loss of a direct pipeline between the Netherlands and 
Norway. 
 
¶3.  (SBU)  In comparison, Roukens noted there was "no role" 
or economic interest for the Netherlands in the Nabucco 
project.  Nonetheless, he said the GONL supported the effort 
as an important means for ensuring route diversification and 
security of supply, despite remaining supply and sovereignty 
issues in the Caspian Sea region.  (NOTE:  Former Dutch 
Foreign Minister Jozias van Aartsen is serving as the current 
EU Coordinator for the Nabucco project.  END NOTE). 
 
Russia Remains Reliable Energy Supplier.... 
------------------------------------------- 
 
¶4.  (SBU)  On the reliability of Russia as an energy 
supplier, Roukens reiterated views, reported reftel, that 
Russia was unlikely to risk the loss of high-paying customers 
and Western financing for political reasons.  He noted that 
Russia had proven to be a reliable supplier in the past. 
Failure by Ukraine and Belarus to make payments for Russian 
gas had also been major factors in earlier supply conflicts, 
he added.  Roukens expressed more concern with potential 
non-political obstacles to Russia's ability to supply Europe 
with gas, including insufficient investment in pipeline 
infrastructure and renovations, and green field development. 
 
...But Also Looking To Other Sources 
------------------------------------ 
 
¶5.  (SBU)  Meanwhile, the GONL continued to develop its 
relationships with other supplier countries, such as Norway 
and Algeria, Roukens said, and remained interested in a 
direct pipeline from Norway.  He dismissed recent statements 
by Algeria's Economic Minister Chakib Khelil that there was 
no excess gas supplies in Algeria for the Netherlands (see 
reftel), adding that the GONL viewed the statement was an 
attempt by the Algerians to increase their leverage in the 
Spanish gas market.  Roukens said Norway and Algeria remained 
logical partners for Europe, given their proximity to the EU. 
 
 
¶6.  (SBU)  To receive liquefied natural gas (LNG) from these 
countries and to diversify sources further, Roukens said the 
Dutch were planning to build three LNG terminals.  On 
December 18, partners Gasunie and the Dutch tank terminal 
service provider Vopak finalized plans to build one of two 
Dutch LNG terminals planned in Rotterdam's Gate Terminal, 
with a projected cost of 800 million euros and an annual 
throughput capacity of 9 billion cubic meters.  Initial 
 
THE HAGUE 00000056  002 OF 002 
 
 
customers will include the Danish firm Dong Energy, the 
Austrian business energy provider Econgas, and Dutch Essent, 
which currently provides between a quarter and a third of all 
gas produced in the Netherlands.  Gasunie and Vopak have also 
announced plans for a LNG terminal in Eemshaven, in the north 
of the country.  Gasunie and Vopak will each acquire a 25 
percent stake in the project, with Essent retaining the 
remaining 50 percent. 
Gallagher